Eleventh Circuit Holds that Paid “New Value” can Still Support a Preference Defense

Joining the Fourth, Fifth, Eighth and Ninth Circuit Courts of Appeal, the Eleventh Circuit recently held that new value does not need to remain unpaid in order to support the subsequent new value defense in a preference action. See Kaye… Read More ›

Fifth Circuit Holds that Disguised Financing is not Entitled to Administrative Priority Claims

“To Lease or Not to Lease?” Whether an equipment lease is characterized as a true lease or a disguised financing in a bankruptcy setting determines what rights and remedies are available to the lessor. For example, if the lease is… Read More ›

Retailer of Luxury Gadgets Files Prenegotiated Chapter 11

On April 3, 2014, Brookstone Holdings Corporation and its affiliates (“Brookstone” or “Company”), developers and sellers of unique and high quality household products, filed a prenegotiated chapter 11 bankruptcy in Delaware.  See In re Brookstone Holdings Corporation, Case No. 14-10752 (Bankr. D…. Read More ›

Not Every Fraud is a Ponzi Scheme???

The case of H. Jason Gold v. First Tennessee Bank, N.A. (In re Taneja),  Adversary Case No. 10-1225 (Bankr. E.D. Va. July 30 2012), concerns an elaborate fraud perpetrated by a mortgage broker, Financial Mortgage, Inc. (“FMI”), against various warehouse lenders, and a bankruptcy trustee’s later attempt… Read More ›

Leading Beef Processing Company Files Bankruptcy

AFA Foods, Inc., a leading ground beef processing company out of Pennsylvania, filed chapter 11 bankruptcy in Delaware on April 2, 2012. Its bankruptcy case is consolidated in Case No. 12-11127, which includes the cases of its affiliates. AFA is… Read More ›