Webinar: Defending Bankruptcy Preference Claims
Speaker: Bruce S. Nathan, Partner Lowenstein Sandler LLP
Trade creditors need to be on the lookout for preference risk when their financially troubled customer files for bankruptcy. This webinar focuses on what credit professionals should be doing to eliminate, or at least reduce, exposure when they are sued on a preference claim. That includes a discussion of the following hot preference issues:
1 What are the elements of a preference claim that a trustee must prove?
2. Whether applied credits received within the 90 day period before bankruptcy are preferences;
3. How to prove the new value defense to preference claims?
4. Whether the new value defense includes paid for new value?
5. Whether the beneficiary of a critical vendor order loses the benefit of the new value defense?
6. Whether the new value defense includes Section 503b9 "20 day goods" priority invoices?
7. Whether preference claims are a defense to Section 503b9 priority claims and other
administrative priority claims?
8. How to prove the ordinary course of business defense?
9. Recent court decisions addressing the ordinary course of business defense?.
10.The impact of being a letter of credit beneficiary on preference exposure
11. Defenses that mechanics lien holders can raise to eliminate preference exposure.
12. Defenses to preference claims that can be asserted by creditors whose contracts are assumed and assigned during the bankruptcy.
13. Special safe harbor defenses that can be asserted in connection with certain commodity supply arrangements
14. The small preference defense and whether there is a venue limit that applies to small preference claims?
15. Risks of doing business with debtors that have not obtained court approved financing/use of cash collateral arrangements.
16. Preference claims and defenses in state insolvency (assignment for the benefit of creditors or receivership) proceedings.
Please email your preference and experiences to firstname.lastname@example.org and they will be brought up during the webinar. Thank you.