Events

Fraudulent Conveyance Actions: TOUSA Revisited

May 3, 2011

TOUSA Revisited: Strategies for Lenders in Loan Transactions with Distressed Companies
Tuesday, May 3, 1:00 pm - 2:30 pm EDT

In what is welcome news for lenders, a Florida federal district court reversed the bankruptcy court’s fraudulent conveyance ruling against the TOUSA lenders. The court also reversed the bankruptcy court’s holding on reasonably equivalent value.

Lenders scored another victory in a related case against a lending syndicate that had extended TOUSA a revolving credit line. The district court affirmed dismissal of fraudulent conveyance claims holding that a post-insolvency amendment to an existing credit agreement was not a fraudulent transfer.

Practitioners must be well versed on the ramifications of the TOUSA developments on rescue financings, liens on subsidiary assets, and the future of fraudulent conveyance litigation.

This seminar will analyze the recent TOUSA rulings, discuss their impact on the practices of commercial lenders and others market participants, and provide strategies to leverage these recent rulings.

Outline

I. Overview of TOUSA II rulings

A. Insolvency
B. Reasonably equivalent value
C. Savings clauses
D. Revolving credit facilities

II. Impact of rulings, evaluating future liabilities, and mitigating impact

A. Commercial lenders
B. Commercial borrowers
C. Secondary loan market participants

III. Trends for future of fraudulent conveyance litigation

Benefits

The panel will review these and other key questions:

• Have the recent TOUSA rulings validated the efficacy of saving clauses in loan documents and guaranties?
• How will a post-insolvency amendment to an existing revolving credit facility agreement impact the fraudulent transfer analysis?
• What challenges and pitfalls remain for secured lenders after the recent TOUSA rulings?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the Interactive Q&A. 

Register by Friday, April 8 and get $50 off.

Sponsored by the Legal Publishing Group of Strafford Publications.