March 29, 2019

Avoidance Updates: Fraudulent Conveyances, Preferences, and Unauthorized Post-Petition Transfers

This panel addresses recent case law addressing avoidance actions.  The Bankruptcy Code sets forth various causes of action to avoid transfers.  The three avoidances at issue in this panel are: preferences (11 U.S.C. § 547), fraudulent conveyances (11 U.S.C. § 548), and unauthorized post-petition transfers (11 U.S.C. § 549).  This panel would be of interest to attorneys representing trustees, creditors’ committees, consumer debtors, and creditors. 

In 2018, the Supreme Court addressed and construed a major code provision concerning a safe-harbor against liability for fraudulent conveyances when financial institutions and securities are at issue.  The case may have widespread application and will be the major topic of the panel’s discussion.

In the past few years, federal appellate courts have addressed the “new value” defense to preference actions.  These case are laying the groundwork for a likely eventual ruling by the Supreme Court.  These cases will be covered.

Finally, the panel will address unauthorized post-petition transfers.

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