In a recent decision from the Delaware bankruptcy court, Judge Christopher S. Sontchi joined the debate over the interpretation of section 547(c)(4)(B) of the Bankruptcy Code, which sets forth the new value defense to a preference claim. Continue reading
Tag Archives: Delaware
Delaware Bankruptcy Court Adopts “Subsequent Advance” Approach to Preference New Value Defense
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Delaware Court Puts the Brakes on Hybrid Tech’s Credit Bid for Bankrupt Fisker Automotive’s Assets
Last Friday, Judge Sleet of the U.S. District Court for the District of Delaware denied Hybrid Tech Holdings LLC’s appeal of the Delaware bankruptcy court’s decision in In re Fisker Automotive Holdings, Inc. et al, to (i) cap Hybrid Tech’s credit bid for Fisker Automotive’s assets, and (ii) require that the assets be sold via a public auction rather than directly to Hybrid Tech in a private sale. The denial of the appeal gave the green light for the auction and sale hearing to proceed. The bankruptcy court’s decision to cap Hybrid Tech’s credit bid sheds light on when a bankruptcy court may limit a secured lender’s right to credit bid “for cause” under section 363(k) of the Bankruptcy Code. Continue reading
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