Randall Klein's "Lender Liability Management: Contractual Traps for Minority Lenders or Fraudulent Transfer Risk for the Majority?" Published in The Creditor Corner
Randall Klein's Alert, "Lender Liability Management: Contractual Traps for Minority Lenders or Fraudulent Transfer Risk for the Majority?," has been published in the Nov. 20, 2022, edition of The Creditor Corner, a weekly publication containing curated content from the Creditor Rights Coalition.
In a previous Alert written by Mr. Klein, he suggested restoration of the good faith doctrine to enable courts to disallow reverse engineering of credit agreements if done in bad faith. This current alert published in The Creditor Corner focuses on the Boardriders Court decision denying the motion to dismiss the good faith claim (following similar results in NYDJ and Serta). Fundamentally, writes Mr. Klein, "the 'good faith' doctrine implies a duty to refrain from destroying the essence of the ratable contract among lenders. But, there is another under-utilized tool that curtails documentation mischief: voidable transaction statutes a/k/a fraudulent transfer statutes."
CLICK HERE for the full Alert.
Randall Klein is a Principal at Goldberg Kohn and Co-Chair of the firm’s Bankruptcy & Creditors’ Rights Group. He concentrates his practice on the protection and enforcement of creditors’ rights. Mr. Klein is nationally recognized as a leader in his field, and for his experience in the drafting and enforcement of intercreditor agreements and unitranche agreements.
