♫ “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.
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).
“‘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)