Bankruptcy Litigation Update: Determining Adequate Capital

This article focuses on the concept of "unreasonably small capital," which is not defined in the Bankruptcy Code or applicable state statutes. Consequently, the determination of adequate capital is fact-intensive and fertile grounds for litigation.

12 minute read August 01, 2017 at 12:02 AM
By
David M. Hillman and Parker J. Milender
Bankruptcy Litigation Update: Determining Adequate Capital

Transactions involving distressed companies, or healthy companies that become distressed, are often attacked as fraudulent transfers. These transactions include leveraged buy-outs, dividend recaps, spin-offs, substantial asset sales and other garden-variety transfers.

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