♫ “Girl, it’s easy to love me now.
Would you love me if I was down and out?
Would you still have love for me?” ♫
-50 Cent, 21 Questions
Yesterday’s post discussed the recent appellate ruling in Sentinel’s bankruptcy, Grede v. Bank of New York Mellon Corp.
Generally when parties to a dispute work out a settlement they can breathe a sigh of relief and put their differences behind them. OK – it’s a little more complicated than that when one of the parties is a chapter 11 debtor that must seek relief from the bankruptcy court to approve the settlement. But what if a party objects? Things get a bit more complicated. And what if the objecting party has no apparent pecuniary interest at stake? In that scenario, the settling parties can rest a little easier as the bankruptcy court in
In the latest ruling in the long-running dispute in Sentinel Management’s bankruptcy case, the Seventh Circuit recently held that a bank employee’s suspicions about the source of the bank’s collateral should have put the bank on inquiry notice, thus precluding the bank from asserting a “good faith” defense to a fraudulent transfer claim that a liquidating trustee brought against the bank.
In a chapter 15 decision, In re Daebo International Shipping Co., Judge Michael E.
“‘Two roads diverged in the woods and I took the road less traveled’ [sic] … and it hurt, man! Not cool, Robert Frost! … But what if there really were two paths? I want to be on the one that leads to awesome.”
– Kid President (Robby Novak)
A foreign company makes a foreign distribution to foreign shareholders shortly before merging with a U.S. company in a highly-leveraged LBO. The resulting company files a chapter 11 petition in the United States Bankruptcy Court for the Southern District of New York 13 months later. Can the foreign transfer be avoided as a fraudulent conveyance under section 548 of the Bankruptcy Code? Previously, the answer was almost certainly not (at least in the Southern District of New York).