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Expert Analysis

The Long View Following In Re Longview Aluminum

Law360, New York (November 15, 2011, 11:32 AM EST) -- There has been a noticeable increase in bankruptcy preference lawsuits wherein the plaintiff alleges that the defendant is an "insider" of the debtor and should therefore be required to disgorge payments received within one year of the debtor's bankruptcy filing. Since the reach-back period for payments to non-insiders is only 90 days preceding the filing date, preference defendants strive to avoid the insider label, in the hopes of being able to retain payments received 91 to 365 days before the bankruptcy filing.[1]...

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