Bankruptcy Preference Actions: Litigating the Ordinary Course of Business Defense When Nothing is Ordinary
TBD
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Bankruptcy
- event Date
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will review the ordinary course of business defense to preference actions. The program will help counsel identify new strategies applicable when practices between the parties and in their industry are or have become anything but ordinary. The panel will also explore the limits on the bankruptcy court's discretion in interpreting "ordinary."
Creditors who the debtor paid within the 90 days (longer in some cases) could not be forced to disgorge them if they were made in the "ordinary course of business" between the creditor and debtor or made according to the ordinary business terms in the industry.
The Bankruptcy Code does not define "ordinary course of business" or "ordinary terms." While certain methods and conventions have developed to establish these defenses, they are not likely to work when entire industries and economies have been thrown into chaos. Counsel will need to have strategies and arguments for asking the bankruptcy courts to modify or change their analysis.
The Consolidated Appropriation Act of 2021 (CAA) protects some creditors who accommodated their obligors. Still, the CAA does not cover many common types of obligations, including leases of personal property or goods and services sold by purchase orders not subject to a master agreement.
Listen as this panel reviews the ordinary course of business defense, the CAA, and best strategies for asserting the ordinary course of business defense in extraordinary situations.
- Introduction
- Understanding the debtor's billing processes
- Ordinary between the parties
- Ordinary terms
- Impact of the CAA
The panel will review these and other notable questions:
- What are best practices for preventing a creditor from becoming a target of a preference action?
