June 6, 2018
Share:
TwitterLinkedIn

The Supreme Court Narrows the Bankruptcy Code Safe Harbor for Securities Transaction Payments

By Erin N. Brady (Hogan Lovells) & Anna Kordas (Jones Day) In our last article, we discussed the U.S. Supreme Court’s acceptance for review of the Seventh Circuit’s decision in FTI Consulting, Inc. v. Merit Management Group, LP, 830 F.3d 690 (7th Cir. 2016), cert. granted, No. 16-784, 197 L. Ed. 2d 894 (U.S. May 1, 2017). The Seventh Circuit had held that the Bankruptcy Code safe harbor provision did not prevent the avoidance of...

April 26, 2018
Share:
TwitterLinkedIn

Timing Is Everything: How to Make a Rough Assessment of Potential Preference Defenses (PART 2)

By Robert C. Maddox Editor’s Note: Part 1 of this article laid out the prima facie case a plaintiff needs to have in order to sue for a preference, outlined the major defenses and explained the importance and use of certain key documents in assessing and maintaining a defense. Part 2 now delves into the major defenses in greater depth. Contemporaneous Exchange Defense Consider whether the transfer was made in a manner other than on...

April 23, 2018
Share:
TwitterLinkedIn

Timing Is Everything: How to Make a Rough Assessment of Potential Preference Defenses (PART 1)

By Robert C. Maddox Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company already has taken a loss on the debtor’s accounts. Your initial response is anger at the unfairness of being sued. Fortunately, Congress included defenses to preference actions so that the debtor’s ordinary transactions would remain undisturbed, and vendors would be encouraged to continue providing goods...

April 2, 2018
Share:
TwitterLinkedIn

DailyDAC is Proud to Sponsor the 12th Annual Credit & Bankruptcy Symposium

ABI, the Turnaround Management Association’s Connecticut Chapter, the Turnaround Management Association's Northeast Chapter and the New York Institute of Credit are pleased to present the 12th Annual Credit & Bankruptcy Symposium at the Mohegan Sun in Uncasville, Connecticut, April 26-27, 2018! The two day Symposium features panel discussions and networking with judges and experienced litigators with industry experience. Financial Poise™ and DailyDAC™ are media sponsors of the 12th Annual Credit & Bankruptcy Symposium. The Symposium...

January 8, 2018
Share:
TwitterLinkedIn

To Tell The Truth; The Importance Of Full And Frank Disclosure To Preserving The Attorney-Client Privilege

Patrick Fitzmaurice
Troutman Sanders


  By Patrick Fitzmauricei Imagine yourself as the owner of a small company, or the CEO of a large corporation. The company is not doing well, but you are convinced the distress can be overcome. While sales are down, competition is fierce and your latest expansion – made with borrowed money – did not go well, the business is fundamentally sound. Indeed, you are convinced the business would be profitable if only the debt service...

December 4, 2017
Share:
TwitterLinkedIn

Third-Party Litigation Funding and Issues It Creates In Bankruptcy Cases - This Ain't Your Father’s Contingency Fee Arrangement!

Thomas J. Salerno, Esq.
STINSON LEONARD STREET, LLP


Third party litigation funding ("TPLF") is, beyond a doubt, here to stay. In bankruptcy cases, TPLF arises in a number of contexts. First is the TPLF as a pre-petition secured or unsecured creditor—i.e. the TPLF source funded litigation and thereby acquired property rights in litigation proceeds or perhaps otherwise as a result. Second, in a post-petition context, the TPLF source may be sought to finance post-petition litigation for a debtor in possession ("DIP"), trustee or...

November 12, 2017
Share:
TwitterLinkedIn

Fraudulent Transfer Remedies – How Much is Enough?

Laura Davis Jones
Pachulski Stang Ziehl & Jones LLP


One of the most powerful tools in the Bankruptcy Code available to bankruptcy trustees (or other estate representatives) to maximize the recovery of creditors is the power to avoid and recover fraudulent transfers of a debtor’s property.  These include transfers that are made, or obligations that are incurred, by a debtor (a) with the actual intent to hinder, delay or defraud creditors (§ 548(a)(1)(A)), or (b) constructively fraudulent transfers, i.e., transfers made or obligations incurred for...

October 23, 2017
Share:
TwitterLinkedIn

Unsecured Creditors Prevail Against the UCC-1

Allen D. Wilen, CPA/CFF, CFA, CIRA, CTP, EisnerAmper LLP
William Pederson, CPA/ABV/CFF, CIRA/CDBV, CFE, EisnerAmper LLP


In the realm of lending, the perfected Uniform Commercial Code-1 (“UCC-1”) is the hallmark of security.  If a secured asset has value, and the liens are valid, what other issues are there to consider?  Well, in at least one instance, underlying intercompany notes were the issue.  And because of the nature of these notes, the perfected UCC-1 lost its shine. In a bankruptcy case filed in the 5th District, the U.S. Debtor parent company had...


More Articles »