8th Circ. Beefs Up 'New Value' Exception To Clawbacks

Law360, New York (March 20, 2014, 6:44 PM EDT) -- The Eighth Circuit on Thursday held that the liquidating trustee of a bankrupt utility management company can't recover payments made in the 90 days prior to the bankruptcy filing if the company received from a separate party new value that was meant for the recipients of the initial payments.

In a published opinion, a three-judge panel upheld a bankruptcy appellate panel’s finding that LGI Energy Solutions Inc.'s Chapter 7 trustee could not void payments LGI made to two utilities in the months before it entered bankruptcy...
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