Archive for June, 2012

Preference Claims Defense Number 2

In our last post we outlined the “ordinary course payment” legal defense against a bankruptcy preference claim. Now let’s look at the “subsequent new value” defense in a bit more detail. Subsequent new value is in the nature of a set off, and is meant to encourage creditors to continue to deal with a company […]

 

Preference Claims Defense Number 1

In our last post we outlined the legal defenses against a bankruptcy preference claim. Now let’s look at the “ordinary course payment” defense in a bit more detail. An ordinary course payment is, essentially, when there was nothing at all unusual or out of the ordinary pertaining to the payment at issue. For example, prior […]

 

Virginia CLE Seminar on Chapter 7 Bankruptcy

On June 14, 2012, Roy M. Terry, Jr. and I were pleased to be faculty for the Virginia CLE in a seminar entitled Chapter 7 Bankruptcy: What the Code and the Rules Won’t Tell You. The seminar, which was broadcast live via telephone and webcast, presented a practical view of the practice of Chapter 7 […]

 

SCOTUS: Secured Creditors Cannot Be Denied the Right to Credit-Bid

On May 29, 2012, the United States Supreme Court decided Radlax Gateway Hotel, LLC v. Amalgamated Bank, ruling that secured creditors cannot be denied the right to credit-bid on the sale of property or assets in the context of a Chapter 11 bankruptcy plan of reorganization. The Chapter 11 debtors were the owners of the […]

 

Bankruptcy Preference Claim Can Be An Unwelcome Surprise

One of the most difficult conversations a bankruptcy attorney can have with a client is to explain the concept of bankruptcy “preference claims”.