'Deepening Insolvency' Is Unrelated To Negligence

Law360 (August 29, 2006, 12:00 AM EDT) -- The U.S. Court of Appeals for the Third Circuit has shed some light, and perhaps created more confusion, on a topic that has garnered a lot of attention lately—claims for "deepening insolvency." Deepening insolvency usually rests on an allegation that the debtor corporation was injured because of an artificial expansion of corporate debt and prolongation of corporate life....

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