A Shifting Tide For Secured Lenders

Law360, New York (November 23, 2009, 11:34 AM EST) -- The U.S. Bankruptcy Court for the Southern District of Florida recently ruled that approximately $500 million of liens granted and obligations incurred by subsidiaries of TOUSA Inc. could be avoided as fraudulent transfers.

The Oct. 13, 2009, decision in Official Committee of Unsecured Creditors of TOUSA Inc. v. Citicorp North America Inc. (In re TOUSA Inc.) is the second significant anti-secured lender ruling handed down by a bankruptcy court within the last six months and may signal a shift in the way that courts traditionally have...
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