July 30, 2012

Upstream Guaranties, Security Interests Ruled Fraudulent Transfers

The Legal Intelligencer

Wilmington and Philadelphia partner Andy Kassner and associate Joe Argentina co-authored an article for The Legal Intelligencer titled, “Upstream Guaranties, Security Interests Ruled Fraudulent Transfers” – the second of a two-part series.

“The case is significant because the court upheld the ruling of the bankruptcy court that various pre-bankruptcy refinancing transactions involving subsidiary guaranties constituted fraudulent transfers, and lenders will need to examine possible unwinding of such refinancings involving distressed companies in the future.”

Andy and Joe, members of the firm's Corporate Restructuring Practice Group, also note that the case demonstrates how judges can review the same factual record and come to opposite legal conclusions.

Click on the PDF link below to view the entire article.

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