On May 15, 2012, the U.S. Court of Appeals for the Eleventh Circuit reinstated the controversial 2009 opinion from the U.S. Bankruptcy Court for the Southern District of Florida in In re TOUSA Inc., which allowed the estate to avoid as fraudulent transfers approximately $420 million in loans extended to the bankrupt home builder as part of a July 2007 financing transaction.
The Restructuring Review will provided an in depth analysis of the Eleventh Circuit’s opinion later this week. Please click here for our previous coverage of the district court opinion and here for an overview of LBOs and fraudulent transfers in the wake of the bankruptcy court opinion.
