Randy Klein Offers His Take on When Liability Management Transactions Can Be Avoided as Fraudulent Transfers
November 14, 2022
Randy Klein, Principal and Co-Chair in the Bankruptcy & Creditors' Rights group, weighs in on the fraudulent transfer risk to the majority lenders. Recently, the Boardriders court denied the motion to dismiss a claim for breach of the covenant of good faith and fair dealing in connection with an aggressive "liability management" transaction. A new complaint in Serta has been filed in front of the same Judge as Boardriders.
Minority lenders have brought similar claims in the Incora litigation. Those Incora lenders have added a count asserting a fraudulent transfer claim. We asserted a similar fraudulent transfer claim on behalf of a minority lender in the NYDJ litigation.
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