Secured Transaction Avoided as Unauthorized Postpetition Transfer

The United States Bankruptcy Court for the Eastern District of North Carolina recently avoided several secured financing arrangements, entered into by a debtor without court approval, as illicit transfers under section 549(a) of the Bankruptcy Code.  See James B. Angel v. Hyosung Motors America, Inc. (In re Britt Motorsports, LLC), Case No. 14-00058 (Bankr. E.D.N.C. April […]

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Eleventh Circuit Avoids Upstream Transfers as Fraudulent

The Eleventh Circuit recently avoided, as fraudulent transfers, certain liens pledged by subsidiaries to secure a $500 million loan made to their parent, Tousa, Inc.  See Senior Transeastern Lenders v. Official Comm. of Unsecured Creditors (In re Tousa, Inc.),  No. 11-11071, 2012 WL 1673910 (11th Cir. May 15, 2012).  These liens were avoided as upstream transfers that, pursuant […]

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