• videocam On-Demand Webinar
  • card_travel Bankruptcy
  • schedule 90 minutes

Fraudulent Transfers and the Subsequent Transferee Defense Under the Bankruptcy Code and UFTA /UVTA

$297.00

This course is $0 with these passes:

CLE
ALL
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About the Course

Introduction

This CLE course will discuss the defense to a fraudulent transfer claim for subsequent transferees from the debtor, the requirements to meet the defense, the issue of value received in consideration for the transferred payment, and what can be recovered.

Description

When a transfer is avoided under the Bankruptcy Code (and states' Uniform Fraudulent Transfer Act (UFTA), now known as the Uniform Voidable Transfers Act (UVTA)), a trustee may recover "the property transferred, or, if the court so orders, the value of such property" from several different players, but not from subsequent transferees who provide "value" for the transfers in good faith without knowledge of the avoidability of the initial transfer from the debtor.

Each of these criteria is litigated, including who is an initial transferee and the "mere conduit" defense, as well as the applicability of the IRS' 10-year lookback period.

In Rajala v. Spencer Fane L.L.P. (Generation Resources Holding Co. L.L.C.), 964 F.3d 958 (10th Cir. 2020), the Tenth Circuit arguably created a new defense when it held that, to qualify as a "transferee" under Section 550, a party must have received the actual "property transferred." In other words, Section 550 did not authorize recovery of proceeds of fraudulently transferred property from subsequent transferees, only of the originally transferred property. The decision has been widely and uniformly criticized as gutting fraudulent transfer law and policy.

Listen as our authoritative panel of bankruptcy practitioners reviews the defense to fraudulent transfer claims for subsequent transferees of payment from the debtor. The panel will discuss best practices for third-party recipients of the funds to avail themselves of the defense and debtors to challenge the defense.

Presented By

Marc E. Hirschfield
Partner
Royer Cooper Cohen Braunfeld, LLC

Mr. Hirschfield, named to Best Lawyers since 2018 for Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, and recognized by New York Super Lawyers annually since 2011, focuses his practice on bankruptcy, business restructuring, creditors’ rights, litigation, and debt finance. With 30 years of experience as an attorney, Mr. Hirschfield regularly represents parties in bankruptcy proceedings and related litigation throughout the country. He is also a court-certified mediator and is appointed to mediation panels formed by the United States Bankruptcy Courts for the District of Delaware and for the Southern and Eastern Districts of New York. Mr. Hirschfield is a member of the American Bankruptcy Institute and a member of the Turnaround Management Association. He serves on the Board of Directors of the Turnaround Management Association's New York Chapter. Mr. Hirschfield is also an accomplished debt finance attorney, regularly representing lenders and borrowers in a wide range of transactions, including secured, unsecured, unitranche, first lien/second lien, and senior/mezzanine structures, as well as term loans, revolving facilities, and asset-backed loan facilities.

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Marc Skapof
Partner
Royer Cooper Cohen Braunfeld, LLC

Mr. Skapof has been recognized as a NY Super Lawyers top-rated bankruptcy attorney for the twelfth consecutive year. He focuses his practice on in- and out-of-court debt restructurings, creditors’ rights, debtor and estate fiduciary representations, healthy and distressed debt financing, lending, DIP and exit financing, bankruptcy litigation, distressed M&A, corporate governance, and bankruptcy-remote transactions. Mr. Skapof has experience advising financially distressed healthcare companies on restructuring options, including representing healthcare debtors and creditors in Chapter 11 cases and serving as counsel to court-appointed patient care ombudsmen. He is an active leader in the restructuring and bankruptcy community, serving as a Global Trustee of the Turnaround Management Association (TMA) and a member of its Chapter Resource and Response Committee. 

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Wednesday, October 13, 2021

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Section 550(b) and UFTA/UVTA defense for subsequent transferees
  2. Requirements to meet the subsequent transferee defense
    1. What is "value" received in consideration for the transferred payment
    2. What constitutes good faith
    3. Who is a subsequent transferee
  3. Recent case law developments under the Bankruptcy Code and the UFTA/UVTA

The panel will review these and other key issues:

  • What is "value" received in consideration for the transferred payment?
  • What must a subsequent transferee show to establish that it accepted the transfer in good faith?
  • What factors can be relied upon in distinguishing between an initial transferee and a subsequent transferee?