Preference Attacks To Recover Prepetition Compensation Paid to Consultants of Troubled Companies

Employees of a troubled company who stay on as consultants to assist in liquidating its assets or preparing the company for a bankruptcy filing may later be disappointed to face claims to claw back their prepetition compensation.

11 minute read April 01, 2019 at 12:07 AM
By
Paul A. Rubin and Hanh V. Huynh
Preference Attacks To Recover Prepetition Compensation Paid to Consultants of Troubled Companies

Employees of a troubled company who stay on as consultants to assist in liquidating its assets or preparing the company for a bankruptcy filing may later be disappointed to face claims to claw back their prepetition compensation. 

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