Some potential buyers of distressed companies may be sitting on the sidelines, waiting for the economic cycle to shift to growth mode so they can return to acquisitions, but some of the most recognized names and most prized assets in the nation have landed in bankruptcy during 2009 due to liquidity constraints, too much leverage, operational issues, etc.
![Photo of David B. Wheeler [1]](https://abi-org-corp.s3.amazonaws.com/committee/Authors/David-Wheeler.jpg)
The most accessible defense to a preference claim is the “new value” defense codified at 11 U.S.C. §547(c)(4). If the requirements of §547(c)(4) are met, this defense enables a creditor to avoid preference liability where it has already received a preferential transfer by subsequently providing new value to the debtor.
The proposals for comprehensive health care reform currently being considered by the U.S. Congress are extensive. Comprehensive reform will likely cost between $800 billion and $900 billion. To pay for this undertaking, Congress is fundamentally restructuring tax policy, provider payments and insurance markets.
Following a year of extreme economic turmoil, lawmakers in Washington have turned their attention to the reform of an industry that the Wall Street Journal called “one of the brightest spots in an otherwise gloomy economy”—the health care industry.
Long-term care facilities continue to be battered by a barrage of financial challenges, and there seems to be no end in sight. Most recently and at the forefront in today’s news is the impact of the proposed health care reform on long-term care facilities.
The addition of §333 to the Bankruptcy Code as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)generated significant controversy because it mandates the appointment of a patient care ombudsman (PCO) if the debtor is a health care business, unless the court finds that “the appointment of such ombudsman is not necessary for the protection of patients u
In a nondischargeability action under 11 U.S.C. §523(a)(2)(A) against an attorney by his client, the Tenth Circuit Court of Appeals held that attorney Harold Riebesell could not discharge a loan made to him by his client in his chapter 7 case where he failed to disclose his perilous financial condition to his client. Johnson v.
Creditor committees use valuation reports in a variety of ways, and it is important for the lawyer or financial advisor to help the committee understand how to read and evaluate a valuation report.
With the greatest financial crisis in a century roaring full steam ahead with no end in sight, bankruptcy filings are up as well as §363 sales. Sales pursuant to §363 of the Bankruptcy Code have become more common than traditional plans of reorganization in bankruptcy cases. As a consequence, senior secured lenders have enforced their right to credit bid in such §363 sales.
