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The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).
Articles in theABI Journal, [1] committee newsletters [2] and conference materials [3] have been addressing various circumstances in which nonbankruptcy alternatives, such as receiverships and assignments for the benefit of creditors (ABC), offer strategic benefits to bankruptcy proceedings.
The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.