Preference Defense: Solvency as a Barrier to Recovery*

Preferential transfers are defined under 11 USC §547. A trustee or debtor-in-possession must prove each of five elements in order for a transfer of a debtor’s interest in property to be deemed a preference. This paper discusses §547(b)(3), insolvency of the debtor, and §547(f), the presumption of insolvency assuming all other required elements are met.

According to §547(b), the trustee may avoid any transfer of an interest in the debtor in property made on or within 90 days of the petition date while the debtor was insolvent. If the transferee is an insider, the relevant time period is extended to one year before the petition date. To read full story, click here

*Presented at the ABI Annual Spring Meeting 2004.

Valuing a Distressed Business: Concepts Everyone Needs to Know*

This panel included valuation specialists who shared their experiences in the process of reviewing a company's financial position, evaluating its prospects, fashioning a business plan and obtaining confirmation of a plan. The panel discussed the basics of valuation, key recent court cases addressing valuation, and provided insight for both legal and turnaround professionals to utilize in their own cases.

Panelists Include:
Lynnette R. Warman—Moderator
Jenkens & Gilchrist PC; Dallas

William Derrough
Jefferies & Company Inc.; New York

Sanford R. Edlein
Glass & Associates Inc.; Dallas

Jamie Pierson
FTI Consulting Inc.; Dallas

Ralph S. Tuliano
KPMG LLP; New York

To view the presentation, click here

*Presented at the ABI Annual Spring Meeting 2004.

Joint Presentation at Winter Leadership Conference

The International and Financial Advisors Committees will be teaming up at the Winter Leadership Conference, December 2–4, in Scottsdale Arizona. The committees will put on a joint program on “The Outlook for Global Insolvencies and Distressed M & A in 2005 and Beyond,” which will attempt to provide the audience with a quick whirlwind global tour of what we have to look forward to in the coming year. Paul Kirk, Managing Director of PWC’s Global Restructuring Services Group, will be the keynote presenter. Becky Roof and George Kelakos will serve as co-moderators of the program.

Committee Seeks Articles Submissions

The committee solicits all ABI members to submit short articles (500-1,000 words) for publication in the committee’s e-newsletter. If you would like to submit an article, please contact Rebecca Roof. The committee is also looking for members who would like to participate in panel presentations.