Successor Liability: Corporate Asset Buyers Beware
May 4, 2009, 12:00 AM EDT
Law360, New York (May 4, 2009, 12:00 AM EDT) -- As the economy continues its downward spiral, more and more companies are faced with increased liabilities that they simply cannot pay. When faced with this predicament, a majority of these companies will consider the more common options of developing payment plans with creditors or filing for bankruptcy protection.
However, certain companies may believe that they can escape their financial obligations by simply conveying their assets to a newly formed company owned by the same shareholders and employing the same personnel, while leaving the liabilities behind in...