Gas Co. Made Fraudulent Transfer To Ex-CEO: 5th Circ.

Law360, New York (February 11, 2010, 5:26 PM EST) -- A federal appeals court has affirmed two decisions in the case of twice-bankrupt TransTexas Gas Corp., saying a lower court was right to rule that a former CEO’s severance payments were fraudulent transfers and that National Union Fire Insurance Co. of Pittsburgh, Pa., did not have to cover the payments.

In a decision Wednesday, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit said a district court was right when it agreed with a bankruptcy court's finding that the severance payments paid...
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