3rd Circ. Holds Lucent As Insider In Winstar's Demise

Law360, New York (February 4, 2009, 12:00 AM EST) -- In a precedential case Tuesday an appeals court hewed to the lower courts, implicating Lucent Technologies Inc. in the demise of Winstar Communications Inc. and entitling the Chapter 7 trustee to hundreds of millions of dollars the collapsed company paid to Lucent.

Debating for the first time whether a creditor can be deemed an insider for the purpose of extending preferential payment deadlines, the U.S. Court of Appeals for the Third Circuit ruled that the district court and bankruptcy courts correctly considered Lucent a nonstatutory insider...
To view the full article, register now.