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, PCV allows a creditor to look beyond the corporate shield and, in certain instances, hold […]
Read MoreIn 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 automatic stay under section 362 of the Bankruptcy Code and be subject to turnover under […]
Read MoreIn 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 used to determine the situs of a fraudulent transfer, which was part of an international, […]
Read MoreThe 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. Hyosung Motors America, Inc. (In re Britt Motorsports, LLC), Case No. 14-00058 (Bankr. E.D.N.C. April […]
Read MoreWhile not expressly authorized by the Bankruptcy Code, it is generally well-established that a bankruptcy court, as a court of equity, is not bound by a party’s characterization of a transaction and, instead, may recharacterize the nature of the transaction, acknowledging the economic realities involved. The prime example occurs in instances where an insider purports to loan money to a […]
Read MoreIn In re AMRCO, Inc., Case No. 13-11086 (Bankr. W.D. Tex. July 26, 2013), the Bankruptcy Court for the Western District of Texas recently invalidated a pre-bankruptcy foreclosure sale that concluded minutes before a chapter 11 petition was filed, based on the Deed of Trust‘s Trustee’s failure to strictly comply with the foreclosure requirements under the […]
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