Avoiding Forfeiture Of Estate From Ch. 7 Conversions

Law360, New York (June 27, 2007, 12:00 AM EDT) -- The ability to borrow money during the course of a bankruptcy case is an important tool available to a chapter 11 debtor-in-possession. Often times, the debtor’s most logical choice for a lender is one with an existing pre-bankruptcy relationship with the debtor.

As a condition to making new loans, however, lenders commonly require the debtor to waive its right to pursue avoidance or lender liability actions against the lender based upon pre-bankruptcy events.

Normally, this type of waiver does not prohibit official creditors’ committees from bringing...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.