03/01/2010
7th Circuit Says Fraudulent Transfer Laws Apply to LBOs (The Journal of Corporate Renewal)
In a recent decision authored by Judge Richard Posner, the 7th Circuit U.S. Court of Appeals addressed the application of fraudulent transfer laws to leveraged buyout transactions (LBOs). The court's ruling in Boyer v. Crown Stock Distribution, Inc., et al., 587 F.3d 787 (7th Cir. Nov. 21, 2009) is especially noteworthy because it addressed—and rejected—several defenses commonly asserted when failed LBOs are challenged in bankruptcy cases….
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