Linda J. Z. Young, associate in Buchanan’s Financial Services practice, was featured as a guest columnist in Law360 regarding an Eleventh Circuit ruling about the definition of “value” in fraudulent transfers. A fraudulent transfer is an attempt to avoid debt by transferring money to another person or company. In the case Young describes, the debtor sought to avoid certain payments made to satellite services providers with which the debtor’s parent company had contracted. Its basis for avoiding the payments was that the debtor did not receive “reasonably equivalent value” in exchange for them. However, the Eleventh Circuit affirmed rulings in favor of the satellite services providers. As Young explained, the court’s holding meant that the definition value might include either a direct or indirect economic benefit for the insolvent debtor by the transferee.
Read the full article (subscription required) – “A Broad Definition Of 'Value' For Fraudulent Transfers” (Law360, February 9, 2016)