The Use of Fraudulent Conveyance Principles to Overturn LBOs

Date

June 6, 2012 at 12:00pm

Location

New York Office and via webinar
399 Park Avenue
New York, NY 10022

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Participants

Stewart D. Aaron, Michael L. Bernstein and D. Grant Vingoe

Arnold & Porter LLP is pleased to invite you to the next of our Regulatory Roundtables, a series which focuses oh how businesses tackle emerging regulatory, litigation and enforcement issues.

Claw-back suits have been brought against "innocent" market participants, who merely tendered in leveraged buyouts and similar transactions, but had no roles other than as tendering public shareholders. These cases are moving forward through the courts and may have far-reaching implications for institutional shareholders and traders, including both domestic and non-US firms. Among the issues we will discuss are:

-What is the current status of the cases?
-What is the statutory framework for attacking these transactions under the Bankruptcy Code and state fraudulent conveyance laws?
-What standards will the courts apply in determining whether the post-LBO company had unreasonably small capital?
-How are market participants defending themselves in these suits?
-What changes can be anticipated in the ways in which LBOs are structured and conducted?

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