Is A 10-Year Clawback Period Really An Option?

Law360, New York (July 7, 2015, 10:45 AM EDT) -- When a company files for bankruptcy, an "estate" is created consisting of all of the company's property. The estate makes up the "pie" that is ultimately divided among the company's creditors. The estate includes not only the property that the company holds at the time of its bankruptcy filing — such as funds in bank accounts or property held in its name — but also property that is held by third parties that the company is able to "claw back" pursuant to certain provisions of the Bankruptcy Code. The more property the debtor is able to recover, the larger the estate available for distribution to creditors....

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