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Lenders Beware: The Ponzi Scheme Presumption Can Trap an Unwitting Lender

A recent Ninth Circuit Court decision highlights a risk for lenders caught up in a Ponzi scheme. In its recent EPD Investment decision, the Ninth Circuit reaffirmed that (as a matter of law) upon finding the existence of a...more

Not So Fast: An Option to Purchase Real Estate May Not Always Be Rejected by the Debtor in Bankruptcy

A recent bankruptcy court decision determined that a debtor cannot reject an unexercised option for the purchase of its real estate, raising a potentially significant bar to any debtor extricating itself from an under-market...more

U.S. District Court in Connecticut Navigates Supreme Court Precedent Barring Recovery of Certain Postpetition Default Interest

An oversecured creditor can recover default interest where the sole default trigger was the borrower’s bankruptcy filing after considering all relevant equitable considerations. While Bankruptcy Code section 506(b)...more

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