Defending Avoidance Actions With Solvency

Law360, New York (February 8, 2008, 12:00 AM EST) -- Recent bankruptcy decisions have highlighted the role of market evidence in measuring the solvency of bankruptcy debtors.

Debtors in bankruptcy (and trustees or unsecured creditors' committees acting on behalf of a bankruptcy estate) often invoke the Bankruptcy Code's avoidance powers – generally, the fraudulent transfer and preference provisions – to demand the return of certain payments and other transfers made before a bankruptcy filing, typically for redistribution to the unsecured creditors of the bankruptcy estate on a pro rata basis.

In most cases, however, the recipient...
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.