November/December 2018

Eleventh Circuit Issues Opinion on New Value Defense to a Preference Claim

Pratt's Journal of Bankruptcy Law
Edward M. Fitzgerald | Alan M. Weiss

Senior Counsel Edward Fitzgerald and Partner Alan Weiss discuss the U.S. Court of Appeals for the Eleventh Circuit's decision to hold the liability for preferential transfer which may be reduced by the new value given to the debtor regardless of whether the new value was paid prior to the petition date. Mr. Fitzgerald and Mr. Weiss review that this ruling will be beneficial for creditors defending against preference claims as it protects creditors that continue to extend credit to financially struggling companies prior to bankruptcy filings.

READ: Eleventh Circuit Issues Opinion on New Value Defense to a Preference Claim

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