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Vol 12, Num 1 l February

Financial Advisors and Investment Banking - an ABI Committee Newsletter

► In This Issue:

Defending Preference Actions: Are the Rules Fair?

ABI

Thora Thoroddsen
Resources Global
Professionals

Los Angeles


Section 547 of the Bankruptcy Code allows a debtor to avoid and recover transfers that were made in the 90 days prior to filing for chapter 11, provided that the payments meet certain criteria. This criteria can include the following: (1) the payment was made to or for the benefit of the creditor in the form of cash or goods; (2) the payment was for a prior debt (not cash-on-delivery or cash-in-advance); (3) the debtor was insolvent; (4) the payment was made within the 90-day period prior to filing (in the case of a payment to an insider, the payment can be made within one year of filing); and (4) the payment gives the creditor (the recipient) more than it would have received if the debtor had filed for a chapter 7 liquidation. This Code section was written in order to prevent a debtor from favoring one creditor over another, which is why these types of payments are called “preference” payments.
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Chapter 7: Navigating Life as a Financial Advisor in Bankruptcy’s Rabbit Hole

ABI

Robert Loh
CBIZ MHM, LLC
New York


It will come as no surprise to anyone in the bankruptcy and corporate restructuring world over the last few years that the overall number of bankruptcy filings has steadily declined since 2010. Statistics maintained by the Administrative Office of the U.S. Courts demonstrate that the total number of bankruptcy petitions that have been filed has decreased from approximately 1.6 million in 2010 to fewer than 940,000 in 2014. The number of chapter 11 business petitions alone have plummeted from almost 12,000 filings in 2010 to slightly more than 6,000 filings in 2014 (see the attached chart). This decrease has lead to significantly greater competition among financial advisors and investment bankers for restructuring engagements, both on the debtor and creditors’ committee sides.
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Why Should Financial Professionals Attend the Annual Spring Meeting?

The Financial Advisors & Investment Banking Committee will be teaming up with the International Committee at this year’s Annual Spring Meeting to discuss how to best structure cross-border deals to protect creditor interests. Speakers for this panel include Nicole Horton of Ernst & Young Capital Advisors LLC in Los Angeles (Moderator); Van Durrer, II of Skadden, Arps, Slate, Meagher & Flom LLP in Los Angeles; Soneet Kapila of KapilaMukamal, LLP in Fort Lauderdale, Fla.; Neil Lupton of Walkers Global in the Grand Caymans; and Paul Melville of Grant Thornton LLP in Chicago.

Join us on April 16 at the Renaissance Washington D.C.!

Have You Visited the New abi.org Yet?

ABI

ABI recently introduced a new flagship website, abi.org, to continue to deliver better services and online resources for members to meet their professional needs. The new website, which launched in beta on January 20, 2015, provides a cleaner, more user-friendly layout for members to find the latest information on bankruptcy news and developments, register for ABI events and access other member resources. Update your profile so we can send you more information about what matters most to you.

We hope you will try out the new site and if you experience any glitches or are having difficulties, click the “feedback” button on the site or let us know at support.abi.org.

39th Annual Alexander L. Paskay Memorial Bankruptcy Seminar • Tampa, Florida • March 5-7

 

April 16-19, 2015 American Bankruptcy Institute 33rd Annual Spring Meeting

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