Bankruptcy Law News and Insights

In situations where a bankruptcy court avoids a fraudulent transfer or similar transaction, subsequent transferees who received proceeds of the avoided transaction from the initial transferee can avoid liability in certain circumstances. Specifically, section 550(b)(1) of the Bankruptcy Code provides that the plaintiff in an avoidance action "may not recover"...

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Scott Kirby, CEO of United Airlines, commented on Spirit Airlines' plan of reorganization in the quote below. In short, Kirby appears to think that Spirit's plan is a road to nowhere, except Chapter 7 liquidation. While he isn't exactly an objective observer, he doesn't appear to be wrong either, as...

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An increasingly common feature of the chapter 11 landscape is the use of a post-bankruptcy trust to deliver value to creditors. Trusts offer an efficient vehicle to provide a recovery to creditors if the value to be distributed is not immediately accessible upon the effectiveness of a plan and will...

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