What Is the New Value Defense to a Preference Action? - Creditor’s Rights Toolkit

Troutman Pepper
Contact

Creditors face many risks when a company files for bankruptcy. One such risk is preference exposure, which is where the company seeks to claw back funds paid to a creditor before the company files for bankruptcy. The Bankruptcy Code provides affirmative defenses that give a creditor an opportunity to reduce its preference exposure or liability.

This article addresses the new value defense (sometimes called the subsequent new value defense) in a bankruptcy case.

Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Troutman Pepper
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Troutman Pepper on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide