Philip Morris Capital Corp. v. Bering Trader, Inc. (In re Bering Trader, Inc.)

EUGENE A. WRIGHT, Circuit Judge:

In this case we examine the scope of section 552 of the Bankruptcy Code, 11 U.S.C. § 552. In particular, we consider whether a prepetition security interest in accounts, general intangibles and proceeds may extend to rents received postpetition under a vessel subcharter. The Bankruptcy Appellate Panel (BAP) affirmed the bankruptcy court’s judgment that Philip Morris Credit Corporation’s prepetition security interest did not extend to such post-petition rents. We affirm.

*501I

The debtors are Bering Trader, Inc. (BTI) and Kemp Pacific Fisheries, Inc. (KPF). BTI owned…