Seventh Circuit: Transfers of Nonpublic Securities Are Protected by the 546(e) Safe Harbor
The Seventh Circuit adopted a broad reading of the Section 546(e) safe harbor to dismiss a fraudulent transfer suit attacking a sale of nonpublic securities.
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Session Description
Recent decisions following challenges to liability management exercises and how documents have changed as a result.
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Target Audience
Creditor
First Name
Gabriel
Last Name
Sasson
Email
gabesasson@paulhastings.com
Firm
Paul Hastings
Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability
Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’
BAP Won’t Recharacterize a Loan and Guarantee and Found No Fraudulent Transfer
The debtor’s payment on a personal guarantee was no fraudulent transfer because the debtor had received reasonably equivalent value in the forms of salary and ownership in a business that ended up being worth nothing.
Former CEO of Jewelry Seller Linked to Bank Scandal Sued to Undo Real Estate Deal
The former chief executive of Firestar Diamond, a jewelry wholesaler accused of taking part in bank fraud allegedly orchestrated by Nirav Modi, transferred his interest in a multimillion-dollar New York residence to his wife days after his company filed for bankruptcy in 2018, the trustee responsible for liquidating Firestar said in a lawsuit seeking to undo the transfer, WSJ Pro Bankruptcy reported. Mihir Bhansali made the transfer to place his interest in the residence, which had been purchased for $7.1 million, “outside the reach of his present and future creditors,” Richard Levin, the trustee working to distribute Firestar’s remaining assets, said in a lawsuit filed Monday in the U.S. Bankruptcy Court in the Southern District of New York. It is the third lawsuit lodged by the Firestar trustee against Bhansali, whom Levin said participated in the Indian bank fraud allegedly orchestrated by jewelry magnate Modi. Levin said in his new lawsuit that the residence in New York was bought partly with cash from the alleged Modi scheme. Levin said that Modi was found living in London in 2019 and arrested. In 2021, after a trial, the U.K. granted India’s request to extradite him, but Modi appealed the extradition ruling, and he remains in prison in London, Levin said.
Avoidance Actions Are Estate Property that May Be Sold, the Fifth Circuit Says
The Fifth Circuit answered one of the two questions being posed at this year’s Duberstein Moot Court Competition.
Session Description
Many bankruptcy professionals are being called upon to help healthcare provider organizations as this industry faces unprecedented business distress. Whatever the professional's role, some basic understanding of healthcare finance can strengthen decision-making and performance.
This session will provide a high-level view of the unique fiscal considerations in the healthcare provider organization, specifically: 1) accounting and financial statements; 2) cashflow including the massive revenue cycle and accounts payable functions; 3) a murkier part of cashflow buried in the various governmental and private payer reimbursement models, and 4) fraud.
Beginning with accounting and financial statements, the mystery of gross revenue, net revenue, and accounts receivable on the income statement will be examined. Even experienced healthcare CFOs can trip up on accounts receivable calculations given the complexities of payer reimbursement models and payment practices, as well as the payer market changes occurring at an ever-faster pace.
Healthcare provider cashflow management consists of voluminous variations and constant change, more so in revenue cycle but also in accounts payable. Years ago, revenue cycle was simply called “billing.” The term revenue cycle more accurately describes the revenue generation process which can involve every function in the healthcare provider organization, from physician and nursing care to lab work and housekeeping.
Third, fundamentals of the most common healthcare reimbursement models will be discussed starting with basic fee-for-service reimbursement and moving through other models to the present attempts at value-based reimbursement. It may be surprising that while the industry grapples with the new value-based models, a sizable part of reimbursement is still fee-for-service.
Finally, there will be brief mention of fraud and embezzlement which can develop in the troubled healthcare provider organization and may be a significant contributor to poor financial performance.
This session will provide a high-level view of the unique fiscal considerations in the healthcare provider organization, specifically: 1) accounting and financial statements; 2) cashflow including the massive revenue cycle and accounts payable functions; 3) a murkier part of cashflow buried in the various governmental and private payer reimbursement models, and 4) fraud.
Beginning with accounting and financial statements, the mystery of gross revenue, net revenue, and accounts receivable on the income statement will be examined. Even experienced healthcare CFOs can trip up on accounts receivable calculations given the complexities of payer reimbursement models and payment practices, as well as the payer market changes occurring at an ever-faster pace.
Healthcare provider cashflow management consists of voluminous variations and constant change, more so in revenue cycle but also in accounts payable. Years ago, revenue cycle was simply called “billing.” The term revenue cycle more accurately describes the revenue generation process which can involve every function in the healthcare provider organization, from physician and nursing care to lab work and housekeeping.
Third, fundamentals of the most common healthcare reimbursement models will be discussed starting with basic fee-for-service reimbursement and moving through other models to the present attempts at value-based reimbursement. It may be surprising that while the industry grapples with the new value-based models, a sizable part of reimbursement is still fee-for-service.
Finally, there will be brief mention of fraud and embezzlement which can develop in the troubled healthcare provider organization and may be a significant contributor to poor financial performance.
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Learning Outcomes
Participants will gain a high-level perspective on the unique fiscal considerations in the healthcare provider organization to inform their work in advising clients in this troubled industry. A solid base of knowledge in healthcare finance will support accurate financial performance projections, prioritization of turnaround strategies, and organization valuations. Given the esoteric complexities in this field, attendees will also gain an appreciation for situations where using healthcare financial specialists may be helpful.
First, participants will understand special aspects of income statements for healthcare provider organizations, in particular the difficulty of estimating accounts receivable due to the variability in the payer market, reimbursement models, and billing policies and procedures.
Second, attendees will be able to discuss the umbrella structure of cashflow in the healthcare provider organization from revenue generation to accounts payable.
They will understand the fundamentals of the “revenue cycle” which spans the entire healthcare provider organization. They will also be able to outline some mid-level billing functions, common operational problems with billing in the distressed healthcare organization, and practical solutions to address them, including artificial intelligence (AI).
On the other side of cashflow management, participants will understand the cash management structure and issues in vendor contracting, purchasing, and accounts payable in the healthcare organization.
Next, participants will gain a deeper awareness of how various healthcare reimbursement models in the marketplace – e.g., Medicare Advantage, health maintenance organizations (HMOs), high-deductible plans, accountable care organizations (ACOs), etc. – affect the financial performance of healthcare provider organizations.
Finally, attendees will be made aware of some places fraud and embezzlement may develop in the distressed healthcare organization.
First, participants will understand special aspects of income statements for healthcare provider organizations, in particular the difficulty of estimating accounts receivable due to the variability in the payer market, reimbursement models, and billing policies and procedures.
Second, attendees will be able to discuss the umbrella structure of cashflow in the healthcare provider organization from revenue generation to accounts payable.
They will understand the fundamentals of the “revenue cycle” which spans the entire healthcare provider organization. They will also be able to outline some mid-level billing functions, common operational problems with billing in the distressed healthcare organization, and practical solutions to address them, including artificial intelligence (AI).
On the other side of cashflow management, participants will understand the cash management structure and issues in vendor contracting, purchasing, and accounts payable in the healthcare organization.
Next, participants will gain a deeper awareness of how various healthcare reimbursement models in the marketplace – e.g., Medicare Advantage, health maintenance organizations (HMOs), high-deductible plans, accountable care organizations (ACOs), etc. – affect the financial performance of healthcare provider organizations.
Finally, attendees will be made aware of some places fraud and embezzlement may develop in the distressed healthcare organization.
Target Audience
Creditor
Jeanne
Goche, MA, JD
jgoche@SolutionsinHealthCareManagement.com
Denise
Hill, JD, MPA
denise.hill@drake.edu
First Name
Jeanne
Last Name
Goche, MA, JD
Email
jgoche@SolutionsinHealthCareManagement.com
Firm
Solutions in Health Care Management, a consultancy and financial advisory specializing in health care
Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View
A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.
Earmarking Requires Dominion/Control and No Diminution of the Estate, Circuit Says
Invoking Supreme Court authority, the Tenth Circuit says that inferences from the evidence are reviewed for clear error just like findings of fact themselves.