Prejudgment Attachment of Defendants' Assets Permitted by Delaware Bankruptcy Court

Faegre Drinker co-chair Andrew Kassner and finance and restructuring counsel Joseph Argentina coauthored an article for The Legal Intelligencer titled “Prejudgment Attachment of Defendants’ Assets Permitted by Del. Bankruptcy Court,” which discusses the importance of counsel presenting extensive evidence of repeated extraordinary behavior to support the issuance of prejudgment relief by a court. This issue was recently considered in a case by the U.S. Bankruptcy Court for the District of Delaware.

Kassner and Argentina outline the pre-bankruptcy litigation and post-conversion fraudulent transfer litigation against the debtor’s principals. They discuss the defendants’ alleged history of misappropriation of estate assets and attempts to conceal their actions. The authors also explain why an asset freeze was appropriate because the trustee sought equitable relief and had established the necessary factors.