Consensus on value is elusive
Article Abstract:
There has long been a controversy among the circuit courts on how to determine whether a debtor has received 'reasonably equivalent value' in a real property foreclosure sale. The 'Bundles rule' is the prevalent position and considers the facts and circumstances of each case in making a determination. The Durrett and Madrid rules are other approaches. Bankruptcy Code 548(a)(2) lists the conditions for setting aside a non-judicial foreclosure sale as a fraudulent transfer. BFP v Imperial Savings & Loan Assn represents the latest efforts of the federal courts to wrestle with this code section.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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Courts sift through LBO suits; lender fraud?
Article Abstract:
Unsecured creditors of companies dealing with the debt loads of leveraged buyouts (LBO) are starting to use the fraudulent conveyance laws in an attempt to undo the LBOs. Moody v Security Pacific Business Credit Inc represents the most recent such case and here the 3d Circuit required evidence to shoulder a debt load which reasonable projections showed the company would not be able to service in order to find that the transaction was a fraudulent conveyance.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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A licensee-debtor may sell patent-based stock; First Circuit allows a debtor to effect a transfer of its licenses through the sale of its shares
Article Abstract:
The United States Court of Appeals for the 1st Circuit confirmed in Institut Pasteur v. Cambridge Biotech Corp. that corporate reorganizations by Chapter 11 debtors could take place around the patent license portfolios by assumption of the licenses and the transfer of ownership of the debtor's stock to new investors. The ruling makes it possible for a patent licensee or debtor to derive value from its nonassignable patent licenses.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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- Abstracts: Constitutional law - Establishment clause - Eighth Circuit holds that public school opened with concessions to religious group does not violate Establishment Clause
- Abstracts: Contracts - Financial Institutions Reform, Recovery, and Enforcement Act - Federal Circuit holds federal government liable for breach of thrift contracts. Winstar Corp v. United States
- Abstracts: Corporate debt restructuring: stock-for-debt exchanges and other workout scenarios. Corporate distributions: handling liabilities in excess of the fair market value of property remains unresolved
- Abstracts: Non-profit hospitals show no mercy to creditors; in bankruptcy, their corporate structures allow them to 'cram down' plans of reorganization
- Abstracts: Professionalism and money. Service to clients comes first; lawyers need to make the right ethical choices to produce the best results