In a first-of-its kind ruling, a bankruptcy court ordered a 2021 whole-business securitization from Hooters Restaurant Group to be cancelled and essentially re-issued.

The DOJ has filed charges against four former Tricolor executives for defrauding finance providers and ABS investors by double-pledging collateral and manipulating collateral characteristics.

While the bureau seems to be stepping away from an enforcement focus within the ABS market, industry attorneys note that a Third Circuit decision is still binding.