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Vol 13, Num 2 l July 2015

Technology and Intellectual Property

► In This Issue:

Fraudulent Conveyance and the Case of In re TransVantage Solutions Inc.

ABI

Ruth Fagan
Blakeley LLP
New York

TransVantage Solutions Inc., a New Jersey-based corporation founded in 1964, provided freight audit and payment services to its customers. Its core business involved three parties and actions: A shipper or common carrier issued an invoice to a customer; the customer advanced money to TransVantage; and TransVantage reviewed the freight charges for accuracy and, when everything was in order, paid the carrier or shipper with the funds that had been entrusted to it.

In May 2013, TransVantage sought chapter 11 protection, and it soon became apparent what brought this event to pass: It is alleged that from as far back as the 1990s, TransVantage used funds advanced by one customer to pay another customer’s freight bills.
» Read More

Available for Pre-Order from the ABI Bookstore—Fraud & Forensics: Piercing Through the Deception in a Commercial Fraud Case

ABI

member price: $95

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obtain the member price.
It is a sorry statement about the pervasiveness of fraud in society today that the demand for the specialized financial and investigatory skills of forensic accountants is greater than ever. Yet some of the most celebrated cases of the modern era—Madoff and Enron, for instance—have hinged on the ability of talented investigators to ferret out the truth in a realm filled with deceit. Fraud & Forensics: Piercing Through the Deception in a Commercial Fraud Case highlights the areas of specialty, challenge, and reward for forensic accountants and the professionals who work with them in commercial fraud cases. Written by members of ABI’s Commercial Fraud Committee, Fraud & Forensics provides a broad and deep look at challenges faced in the course of a commercial fraud matter, as well as the tools available to help identify, unwind, and prove fraudulent transactions. This book will also assist both forensic accountants and the professionals that work with them to sift through the fine details while creatively considering all of the possibilities to fit together the pieces of a fraud puzzle.

An Update on Payment of Unsecured Creditors’ Professional Fees and Expenses in Chapter 11 Cases

ABI

Timothy W. Brink
Meltzer Purtill & Stelle LLC
Chicago

While the Bankruptcy Code provides for payment of the fees and expenses of an official creditors’ committee’s court-approved professionals and for reimbursement of the expenses (although not the professional fees) incurred by a member of an official creditors’ committee incurred in performing committee duties, it permits an unsecured creditor to seek reimbursement of “actual, necessary expenses,” plus “reasonable compensation for professional services” only where the creditor has made a “substantial contribution” in the chapter 11 case. The Bankruptcy Code does not define “substantial contribution” or list the criteria to be used in determining whether a substantial contribution has been made. However, courts have interpreted “substantial contribution” narrowly, limiting reimbursement to instances of...
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Don’t Forget the Forward Contract Defense

ABI

Andrew L. Cole
LeClairRyan
Annapolis, Md.

You have probably given the preference defense speech countless times to unsecured trade creditor clients that 90-day payments are likely preferences, but may be covered by one of the typical § 547(c) defenses: subsequent provision of new value, ordinary course of business and contemporaneous exchange for new value. The standard defenses are so prevalent, it is easy to virtually ignore the § 546 limitations on avoiding powers (other than the two-year statute of limitations). While the vast majority of trade creditor preference cases are defended based on one or more of the typical § 547 defenses, once in a while a trade creditor comes along with a commodity supply contract, potentially bringing the case within the forward-contract limitation on a trustee’s avoidance powers set forth in § 546(e).
» Read More

New and Improved! ABI’s Committee Website has Moved

You may have noticed a few changes to the committee site over the last week, including a new location. The committees' webpages have now been integrated into the main ABI website. To access these new pages, simply visit abi.org, hover over the "Membership" tab, and click on "Committees." Here, you will be able to access newsletter articles, recent recordings, announcements, listserve activity and contact information for your leadership team.

Not sure of what committees you are a member? Update your profile, select the "Committees" tab and use the check boxes to update your status. While you're here, take a few moments to update your full preferences, including CLE and bar information, contact information, title, and more. Uploading a professional photo is also a great way to make yourself more visible in the directory. Not only will your photo be included in the directory, but ABI staff will also have it available for use with any future article or speaking bylines.

Have comments, questions or concerns? Email us through our new support system: support@abi.org.

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