Bankruptcy Law: Tousa Update - June 2012


We reported to you in detail about the Tousa Bankruptcy Court decision in November, 2009 which found payments to lenders and the grant of associated liens were avoidable as fraudulent conveyances. The impacted Tousa lenders appealed the Bankruptcy Court’s decision to the United States District Court, which reversed the Bankruptcy Court’s decision. The Tousa estate then appealed the District Court’s reversal to the U.S. Court of Appeals for the 11th Circuit, which AFFIRMED the Bankruptcy Court’s decision. The 11th Circuit ruled that:

(1) certain secured obligations Tousa, Inc. and its subsidiaries incurred to payoff a prior lender, and the associated liens on the subsidiaries’ assets, can be avoided as fraudulent conveyances; and (2) the prior lender who received the payoff must return the value it received to the bankruptcy estate.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Shumaker, Loop & Kendrick, LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.