Account must be taken of the remedial section of the Uniform Fraudulent Conveyance
Act (still the law in New York).
As one scholar explained, "because LBOs are premised on the existence of hidden value not recognized in book values, using book values to measure solvency in LBOs would render almost every LBO target insolvent, effectively voiding every LBO challenged in court as a fraudulent conveyance
If the company is solvent, then a constructively fraudulent conveyance
action fails as a matter of law.
Hy-Drive said it is the plaintiffs' position that CHEC's motion to stay the fraudulent conveyance
is without merit since the existing legislation referred to by CHEC is based primarily on the assets alleged to have been fraudulently conveyed by Global Tech.
The court's decision in Freeman is in keeping with a series of recent Florida appellate decisions concerning fraudulent conveyance
Today's Uniform Fraudulent Transfer Act (UFTA) carries forward general policies that were incorporated in earlier nonuniform statutes and the Uniform Fraudulent Conveyance
See David Gray Carlson, Is Fraudulent Conveyance
92) However, a transfer into a trust in which the debtor-settlor retains any right to assets that he claims are not available to creditors is more likely to be suspect as a fraudulent conveyance
laws, common in most offshore districts, will prevent transfers of assets following a lawsuit.
If the court invokes the fraudulent conveyance
provision, it could invalidate the liens the lender holds, thus making it an unsecured creditor.
More importantly in this context, a transfer can also be set aside as a fraudulent conveyance
, if it constitutes a "constructive" fraud on creditors.
Wagner, Partner, Pepper Hamilton LLP will speak at the Knowledge Group's webcast entitled: “What You Need to Know About Fraudulent Conveyance
Law in 2014.
Similarly, the purchasing company can be reached by creditors if those creditors can show the asset purchase amounted to a fraudulent conveyance
, which can require proving that the selling company was made insolvent by the conveyance, that the transaction occurred at a "suspicious" time, and that the buyer knew there was significant pending legal action against the seller.
doing business as Track Town Pizza Springfield: Plaintiff alleges fraudulent conveyance
The concept is similar to the concept of a fraudulent conveyance
under the federal bankruptcy code.