Bankruptcy Fraudulent Transfers as Securities Claims: Opening the Door to Recovering D&O Insurance Proceeds
A live 90-minute CLE video webinar with interactive Q&A
This CLE webinar will discuss the novel approach for accessing D&O insurance proceeds to repay fraudulent transfers taken in Verizon Commc’ns. Inc., et al. v. Nat’l Union Fire Ins. Co. of Pittsburgh, et al, Case No N18C-08-086 EMD CCLD (Del. Super. Ct. Oct. 18, 2022). The panel will discuss the rationale of Verizon, whether the Bankruptcy Code's definition of securities in Section 510 must be the same as the definition of securities under an insurance policy, whether claims treated as securities for purposes of D&O coverage must be subordinated under Section 510, and how litigation trustees and committees can leverage the case to augment the estate.
Outline
- Overview of Verizon Commc’ns. Inc., et al. v. Nat’l Union Fire Ins. Co. of Pittsburgh
- Choice of law and rules of policy interpretation
- Key policy definitions, provisions, and exclusions
- Derivative standing issues
- Reasonable expectation of coverage defense
- Bankruptcy applications and strategies
Benefits
The program will review these and other pivotal issues:
- What was the court's logic in holding that fraudulent transfer claims were securities claims?
- What is the relevant policy language to review?
- Does the analysis change based on who "owns" the D&O policy?
Faculty
Stephen B. Selbst
Partner
Herrick, Feinstein
Mr. Selbst has more than 30 years of experience representing debtors, creditors, official committees, distressed... | Read More
Mr. Selbst has more than 30 years of experience representing debtors, creditors, official committees, distressed investors and asset purchasers in bankruptcies and out-of-court restructurings. He is a frequent lecturer on bankruptcy and restructuring topics and has published articles and book chapters on bankruptcy-related topics. He has been frequently quoted in newspaper articles on insolvency related topics and has appeared on CNBC.
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Steven B. Smith
Partner
Herrick, Feinstein
Mr. Smith focuses his practice on complex corporate restructuring and creditors' rights, including in court Chapter... | Read More
Mr. Smith focuses his practice on complex corporate restructuring and creditors' rights, including in court Chapter 11 cases and out-of-court workouts. He represents official and ad-hoc creditor committees, secured lenders, administrative agents, and other parties-in-interest in restructuring matters. He is experienced in analysis of true sale, non-consolidation and bankruptcy remoteness principles.
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