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Course Details

This CLE webinar will provide bankruptcy litigators guidance on recent developments and key issues about essential elements of fraudulent transfer law under § 548 of the Bankruptcy Code and under state avoidable transfer jurisprudence that may affect their litigation practice, whether pursuing or defending claims. The panel will discuss significant court cases on topics such as standing, implied elements of fraudulent transfer claims, what can be recovered and from whom, expansion of the lookback period under Section 544(b)(1) (and the definition of "allowable"), the non-waiver of sovereign immunity, expansion of § 546 safe harbors, and other key issues.

Faculty

Description

The law of fraudulent transfers is ever changing in response to creative theories by both plaintiffs and defendants to protect assets and level the playing field if a debtor becomes insolvent. Recovering or defending against constructive or allegedly intentionally fraudulent transfers is a staple of bankruptcy practice.

The evolving fraudulent transfer landscape will affect present and future litigation strategies, as well as how transactional lawyers assess risks and structure new deals to withstand analysis made in hindsight. Decisions from certain jurisdictions or in high profile cases may have a disproportionate impact, especially if deal documents provide that the laws in those jurisdictions should govern. 

Updated case law addresses core issues such as when valuation of a negotiated deal can be attacked, standing and who owns the claims, whether transfers must damage creditors to be recoverable, caps on recovery, how to analyze Section 544, and the availability of safe harbors. Of particular interest are changes as to when actual intent to hinder, delay, or defraud may not be required and intent imputed to innocent parties. 

It is imperative that bankruptcy attorneys litigating and settling these claims recognize the impact of these developments and adjust their approaches to achieve the client's goals.

Listen as our panel discusses significant federal and sometimes state law decisions on game-changing topics that impact pursuing or defending fraudulent conveyance litigation.

Outline

I. Recent trends in fraudulent conveyance law

A. Standing

B. Intent

C. Valuation

D. Recovery

E. Limits on trustees' powers

II. Defenses

A. Good faith and reasonably equivalent value (Sections 548(c) and 550(b)(1))

B. The safe harbor defenses (Section 546(e))

III. Recent cases and other developments

Benefits

The panel will review these and other important issues:

  • When can the bankruptcy trustee assign or sell avoidance actions?
  • Can the trustee recover even if there is no harm to creditors?
  • What can be recovered and is there a cap on recovery?
  • Who owns a fraudulent transfer claim and when do creditors have the right to sue?