Circuit Split? Mirant Vs. Adelphia

Law360, New York (May 11, 2012, 2:47 PM EDT) -- Avoidance actions under Article 5 of the Bankruptcy Code are some of the most effective tools for a trustee seeking to recover assets which a debtor has previously transferred. Recoveries from avoidance actions enable the trustee to enlarge the estate for the benefit of creditors at the expense of the creditors who received the avoided transfers.

What if, however, all of the debtor’s creditors have been paid in full? It may seem logical that the trustee would have no standing to commence the avoidance actions, as...
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