Avoidance Actions

Fifth Circuit Restricts Double Recovery in Fraudulent Transfer Action

The laws of preferential and fraudulent transfers under the Bankruptcy Code can often seem theoretical and formulaic. When certain boxes are checked, it appears, at first blush, that a pre-bankruptcy transfer can be avoided, regardless of any intent or surrounding… Read More ›

Delaware Court Holds Chapter 7 Trustee Can Sell Avoidance Claims

In Claridge Associates, LLC, et al. v. Anthony Schepis (In re Pursuit Capital Management, LLC), Adv. P. No. 16-50083 (LSS) (Bankr. D. Del. Nov. 2, 2018), the Honorable Laurie  Silverstein held that a chapter 7 trustee was authorized to sell… Read More ›

Is it Harder to Pierce the Corporate Veil of a Limited Liability Company?

Piercing the corporate veil (PCV) is a remedy often pursued by a creditor of an insolvent entity against the entity’s parent or principal. While the corporate veil generally shields a shareholder from the general obligations of his or her corporation,… Read More ›

Delaware Bankruptcy Court Finds Misappropriated Trade Secrets are Subject to Avoidance and Turnover

In Corporate Claims Management, Inc. v. Shapier, et al. (In re Patriot National Inc.), Adv. Pro. No. 18-50307 (Bankr. D. Del August 8, 2018), the Delaware Bankruptcy Court found that alleged misappropriation of trade secrets could constitute a violation of the… Read More ›

Could the “Collapsing Doctrine” be Used to Avoid an Extraterritorial Transfer?

In LaMonica v. CEVA Group PLC, et al. (In re CIL Limited), Adversary No. 14-02442 (Bankr. S.D.N.Y June 15, 2018), the Bankruptcy Court for the Southern District of New York was tasked with deciding whether the “collapsing doctrine” could be… Read More ›

Secured Transaction Avoided as Unauthorized Postpetition Transfer

The United States Bankruptcy Court for the Eastern District of North Carolina recently avoided several secured financing arrangements, entered into by a debtor without court approval, as illicit transfers under section 549(a) of the Bankruptcy Code.  See James B. Angel v…. Read More ›