Supreme Court Clarifies “Actual Fraud” for Purposes of Debt Discharge

Key Notes:

Filed under:
USA, Insolvency & Restructuring, Litigation, White Collar Crime, Thompson Hine LLP, Bankruptcy, Debtor, Fraud, Debt, Misrepresentation, Bankruptcy discharge, Fifth Circuit
Authors:
Alan R. Lepene , John F. Isbell , Fareed Kaisani
Location:
USA
Firm:
Thompson Hine LLP
Lender beware: TOUSA bankruptcy court holding reinstated

In October 2009, the court overseeing the TOUSA, Inc. bankruptcy cases in the Southern District of Florida (Bankruptcy Court) set off considerable alarm bells throughout the lending community when it unraveled a refinancing transaction as a fraudulent conveyance based upon, in primary part, the fact that certain subsidiaries of TOUSA, Inc. pledged their assets as collateral for a new loan that was used to repay prior debt on which the subsidiaries were not liable, and that was not secured by those subsidiaries’ assets.

Filed under:
USA, Florida, Banking, Insolvency & Restructuring, Litigation, Thompson Hine LLP, Bankruptcy, United States bankruptcy court
Authors:
John F. Isbell , Andrew L. Turscak, Jr. , Alan R. Lepene , William H. Schrag
Location:
USA
Firm:
Thompson Hine LLP