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Hosted by the Bankruptcy Litigation and Commercial Fraud Committees. This panel will explore whether and how far U.S. avoidance provisions might apply extraterritorially, and will discuss the challenges and pitfalls of alternate theories of recovery.
This panel hosted by the Commercial Fraud and Secured Credit Committee will take a fresh look at secured creditor rights and unique solvency issues in fraud and Ponzi cases. Learn how to avoid being trumped in federal forfeiture proceedings or paying on bankruptcy clawback claims by treading in the safe harbor of § 546(e) — and learn how to navigate the shoals of receivership.
This webinar will focus on the criminal bankruptcy fraud provisions of Title 28. The presentation will use examples from well-known bankruptcy fraud cases to illustrate how these laws play out in practice. The presentation will also touch on other criminal statutes (e.g., mail and wire fraud) that are frequently implicated in bankruptcy fraud cases.
Lees Inns of America (LIA) was a public company that built and operated hotels. Lester Lee (Lester) and his brother William each owned 25 percent of LIA. In 1994, LIA went private and Lester became the majority shareholder and chairman of the board. The balance of shares were held by a trust (the Trust) created by William with his two sons as co-trustees. In 1998, a falling out occurred between Lester and his nephews. LIA’s board removed them as directors, stripping the Trust of representation on the board.
An insurance policy covering directors and officers of a company can provide a valuable source of restitution for a bankruptcy estate and its creditors who have been wronged by actionable negligence and/or failures to act by corporate officers and directors. An informed plaintiff will read the applicable policy (prior to instituting suit if possible) closely, as such policies uniformly contain various exclusions to coverage.[1] When a claim against a director or officer (D&O) falls under a policy exclusion, the policy’s coverage might not apply to that claim. The insurer may issue a “reservation of rights” letter to its insured detailing those claims that the insurer has decided are not covered by the policy.
Bankruptcy attorneys usually think of Rule 2004 of the Federal Rules of Bankruptcy Procedure as a near-unstoppable discovery tool that can be used by a debtor-in-possession (DIP), panel trustee or liquidating trustee to obtain documents needed to evaluate and successfully prosecute claims against insiders and others.[1] This tool is a much-needed one, particularly in cases of insider malfeasance, where the insider — not the DIP or trustee — has the needed books and records.
Student loan debt has now grown to over $1.5 trillion. Despite a relatively strong economy, more than 8 million borrowers are delinquent or are in default under their loans. Of particular concern to lenders is that these figures will only worsen if economists’ predictions for a slowing economy ring true. Lenders can no longer expect with certainty that a student loan will be virtually impossible to discharge.
First enacted during the Great Depression, the Perishable Agricultural Commodities Act (PACA)[1] in part sought to protect the suppliers of fruits and vegetables who had been left unpaid when purchasers went bankrupt. The PACA was further strengthened in 1984 when it was amended to include statutory trust protections for unpaid suppliers. The new requirements for purchasers of fruits and vegetables included a requirement to hold any proceeds derived from the sale of fruits and vegetables in trust for the benefit of the supplier.
