Subsequent to the Bankruptcy Abuse Prevention and Consumer Protection Act Of 2005 (BAPCPA), the “ordinary-course” defense to preferences has become significantly more prevalent for creditors seeking to defend against preference actions.[1] This act modified the requirements for the “ordinary course” defense, making it necessary only to

It has been a basic principle of U.S. commercial law that secured creditors have the right to credit-bid up to the full face amount of their debt at an auction of their collateral. However, the U.S. Court of Appeals for the Third Circuit recently created a bankruptcy plan exception to this well-established rule.

Certainty in business translates into increased expenses for both buyers and sellers, or in the chapter 11 context, debtors and creditors. The Eleventh Circuit Court of Appeals has increased debtors’ and creditors’ costs of doing business by issuance of its opinion in Marathon Petroleum Co. v. Cohen (In re Delco Oil Inc.), 599 F.3d 1255 (11th Cir.

Commercial real estate projects are typically financed with non-recourse mortgage loans for tax reasons. If the borrower defaults, the lender’s sole recourse is to foreclose on the mortgaged property to recover on any balance owed under the loan; it may not recover against the other assets of the borrower or its principals.