Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Seller Beware: Recovering the Value of Preferential Transfers of Goods or Equipment

Imagine you are an equipment manufacturer. You sell $45 million in goods to a reliable customer on credit, shipping them to a third-party warehouse to be held for the customer to pick up when needed. Months later, unable to pay and sliding toward bankruptcy, the customer returns the unused equipment. The next thing you know, the customer, having filed for bankruptcy, sues you to recover not only the $45 million value of the returned equipment, but also an additional $55 million in cash payments the customer had made.That is exactly the situation Nortel Networks Inc. ('Nortel') recently faced ... Part One of this article discusses some of the many novel legal issues relating to prepetition equipment returns that arose in the Nortel case.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
This premium content is locked for The Bankruptcy Strategist subscribers only

Continue reading by getting
started with a subscription.

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS FOR BANKRUPTCY LAW PRACTITIONERS.
  • Stay current on the latest information, rulings, regulations, and trends
  • All aspects of bankruptcy law are covered
  • Tap into expert guidance from top bankruptcy lawyers

SUBSCRIBE NOW

Subscribe Now For Unlimited Access

Read These Next