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May 24, 2012

New Appeals Court Decision in TOUSA Case on Subsidiary Guarantees and Fraudulent Conveyance

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Last week's federal appeals court decision in the TOUSA bankruptcy litigation provides important guidance on the enforceability of subsidiary guarantees and other upstream credit support, especially in distressed refinancing transactions. It also highlights the risk for outgoing lenders that their repayment may be subject to clawback if the new financing is subject to fraudulent conveyance attack.

View full memo, "New Appeals Court Decision in TOUSA Case on Subsidiary Guarantees and Fraudulent Conveyance"

Authors and Contributors

David Beveridge

Partner

Capital Markets

+1 212 848 7711

+1 212 848 7711

New York

Jonathan (JD) DeSantis

Partner

Capital Markets

+1 212 848 5085

+1 212 848 5085

New York

Jason Lehner

Partner

Capital Markets

+1 416 360 2974

+1 416 360 2974

+1 212 848 7974

+1 212 848 7974

Toronto

Maura O’Sullivan

Partner

Finance

+1 212 848 7897

+1 212 848 7897

New York

Harald Halbhuber

Partner

Capital Markets

+1 212 848 7150

+1 212 848 7150

New York