How to Identify a Non-Statutory Insider

Recently, the Third Circuit Court of Appeals affirmed the lower courts' rulings that a public company was an insider of another non-affiliated public company and was therefore required to return a $188.2 million payment made over four months before the debtor's bankruptcy filing. This decision, illustrates how critical it is for lenders and vendors to conform their conduct toward troubled companies so as to reduce their risk of being deemed non-statutory insiders.

26 minute read March 30, 2009 at 09:45 AM

Paul Rubin and

Hanh Huynh

There are distinct disadvantages to being an insider in bankruptcy litigation.

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How to Identify a Non-Statutory Insider

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