Part One of a Two-Part Article
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.
Recovering the Value of Preferential Transfers of Goods or Equipment: Seller Beware
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.
By
Norman N. Kinel And Timothy A. SolomonThis premium content is locked for LawJournalNewsletters subscribers only
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