NCJ Number
132675
Journal
Secured Lender Volume: 47 Issue: 1 Dated: (January-February 1990) Pages: 62,64-66,68-70,72-74,76-77
Date Published
1990
Length
12 pages
Annotation
This annual review of legislative and judicial developments covers issues of particular interest to the asset-based financial services industry.
Abstract
Recipients of fraudulent transfers in bankruptcy proceedings have no right to contribution payments from other recipients of fraudulent transfers according to the court in Wieboldt Stores, Inc. v. Schottenstein (1990). The court in In re Microfab, Inc. (Massachusetts, 1989) held that a trustee cannot be ordered to comply with an environmental cleanup obligation if the trustee does not have the financial resources to satisfy fully that obligation, even though the debtor's property poses a threat of imminent and identifiable harm to public health and safety. Two courts addressed the issue of whether a claim for recovery of cleanup costs incurred postpetition in connection with prepetition contamination which arises prepetition or postpetition. The issue is important because only prepetition claims are dischargeable in bankruptcy. Other court cases discussed pertain to equitable subordination, the postpetition effect of security interests in proceeds, successor liability, substantive consolidation, automatic stay, and interest and expenses on secured claims.