Leveraged Buyout Transactions Challenged in Bankruptcy
Litigating Fraudulent Transfer Claims Against Lenders, Equity Purchasers and Shareholders
Recording of a 90-minute CLE webinar/teleconference with Q&A
Conducted on Wednesday, March 28, 2012
Recorded event now available
This CLE webinar will update practitioners on the latest challenges to leveraged buyout transactions in bankruptcy. The panel will explain the implications of particular deal structures, review underlying legal theories of creditor challenges, and outline best practices for mitigating risk or maximizing recovery.
Description
As many of the leveraged buyout transactions in recent years head into bankruptcy, creditors are aggressively attacking these deals, bringing fraudulent transfer claims against lenders, equity purchasers and shareholders.
The Lyondell case, one of the largest leveraged buyout/fraudulent transfer cases to date, involved a number of novel and complex issues. Sellers and equity firms in LBOs must carefully consider the effect of buyouts on the target company’s creditors.
The Tribune bankruptcy case may set precedents on leveraged buyouts and the protections afforded shareholders who sell stock from an LBO deal. The Section 546(e) settlement payment safe harbor was rejected as a defense in the McMenamin's Grill case.
Listen as our authoritative panel of bankruptcy attorneys discusses recent trends in fraudulent transfer challenges to leveraged buyout transactions and different approaches to mitigate risk of, or maximize recovery in, an avoidance action.
Outline
- Avoidance actions: standards in the LBO context
- Reasonably equivalent value
- Insolvency or unreasonably small capital
- Collapsing loan transactions
- Section 546(e) settlement payments
- Recent LBO/fraudulent transfer litigation
- Lyondell
- Tribune Co.
- Extended Stay
- McMenamin's Grill
- TOUSA
Benefits
The panel will review these and other key questions:
- What factors are emerging as critical in courts' analysis of whether an LBO is avoidable in bankruptcy?
- What LBO structures are being implicated by creditor challenges?
- What are the limitations on protections for shareholders in LBO deals?
- What steps can sellers and PE firms take to mitigate avoidance risks?
Faculty
Lisa S. Bonsall,
Partner
McCarter & English, Newark, N.J.
She practices in diverse areas of litigation, focusing on commercial litigation and bankruptcy. She represents secured and unsecured creditors, bank group agents, servicers, contract parties, lessors, vendors, and other interested parties in all aspects of debtor-creditor relations and bankruptcy, including out-of-court workouts, loan restructuring, asset recovery and bankruptcy-related litigation.
Henry P. Baer,
Partner
Finn Dixon & Herling, Stamford, Conn.
His practice focuses on complex financial transactions involving distressed assets. He has significant experience representing buyers and sellers of assets in distressed situations, first lien, second lien, mezzanine and DIP lenders, equity participants, retained professionals, and Boards of Directors of insolvent companies and of companies in the “zone of insolvency.”
Ordering
Online CLE - Audio Recording
Includes audio streaming of full program plus handouts (available 24 hours after live seminar).
CLE:
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CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX*, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*Indicates that Strafford needs to process the CLE — see below to purchase this option.)
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Program Materials
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Program Materials
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CLE Credit
Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.
Customer Reviews
Program provided a good synopsis of issues and updates on recent case law.
Anuj Desai
Arnall Golden Gregory LLP
The seminar was very informative and gave a great review of relevant cases.
Meghan Sherrill
Troutman Sanders LLP
Program provided good coverage of some of the fraudulent transfer issues arising in LBOs.
Thomas Allington
Rubin & Levin, P.C.
The webinar was very informative on very pertinent matters and had a good flow.
Noam Wiener
Allen & Overy LLP
The seminar was very insightful with a terrific grasp of the relevant case law and legal issues.
Gregory Fox
Friedman Kaplan Seiler & Adelman LLP
Bankruptcy Law Advisory Board
Partner
Nixon Peabody
Partner
Potter Anderson & Corroon
Of Counsel
Haynes & Boone
Shareholder
Greenberg Traurig
Partner
Dechert
Shareholder
Vedder Price
Partner
Nixon Peabody
Partner
Kaye Scholer
Counsel
Skadden Arps Slate Meagher & Flom
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