Wilmington and Philadelphia partner Andy Kassner and associate Joe Argentina co-authored a two-part series for The Legal Intelligencer on the case of In re Tousa. Part one of the series is titled, “11th Circuit Upholds Fraudulent Transfer Ruling in In re Tousa,” part two is titled, “Upstream Guaranties, Security Interests Ruled Fraudulent Transfers.”
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.
To read the first part of the case analysis, which includes analysis of the judgment entered by the Florida Bankruptcy Court, click here.
To read the second part of the case analysis, which includes analysis of the District Court ruling and a discussion of the ongoing interest in the case, click here.