The document discusses bankruptcy preference claims and defenses available to trade creditors. It provides details on what constitutes a preferential transfer, who can avoid transfers, and affirmative defenses creditors can use such as contemporaneous exchange, ordinary course of business, new value provided. It also discusses analyzing payment histories to establish ordinary course of business and determining what constitutes an industry for comparing business practices.
Eric Travers presented "Negotiating Retainage" on January 13, 2015, for the ASA Building for Profit Internet Learning Series. He discussed ways to reduce and eliminate retainage and how to negotiate from a position of strength. Eric also provided tips and examples of how to modify bids to eliminate or disincentive retainage.
Bid Shopping + Bid Peddling: What It Is, Why It Hurts, and What Can Be Done A...Kegler Brown Hill + Ritter
Eric Travers presented "Bid Shopping + Bid Peddling: What It Is, Why It Hurts, and What Can Be Done About It?" at the LMCI/FIF Convention in Las Vegas, NV in December 2015.
The presentation discussed understanding bid shopping and peddling, legal and ethical problems and practical options.
Eric Travers presented "Negotiating Retainage" on January 13, 2015, for the ASA Building for Profit Internet Learning Series. He discussed ways to reduce and eliminate retainage and how to negotiate from a position of strength. Eric also provided tips and examples of how to modify bids to eliminate or disincentive retainage.
Bid Shopping + Bid Peddling: What It Is, Why It Hurts, and What Can Be Done A...Kegler Brown Hill + Ritter
Eric Travers presented "Bid Shopping + Bid Peddling: What It Is, Why It Hurts, and What Can Be Done About It?" at the LMCI/FIF Convention in Las Vegas, NV in December 2015.
The presentation discussed understanding bid shopping and peddling, legal and ethical problems and practical options.
Analysis of the Supreme Court decision in M&S v BNP Paribas. Their Lordships clarified that the test for implied terms remains strict necessity in the wake of Belize Telecom.
From a presentation I did for Print Magazine.
How good are you? No, we’re not talking about your design chops. We’re talking about creating positive change in the world. Designers everywhere are becoming more involved in good causes—and attracting clients who also want to make a global impact and reach an audience that cares about today’s most important issues.
In this live webcast, web designer for Core Industries and School of Visual Arts professor Daniel Schutzsmith will show how leveraging the power of change-agent thinking—and tapping into the practical web design and intuitive web applications now employed by major philanthropic iniatives—can help you make waves for your clients, your company, and your career.
• Learn about upcoming trends to create audience involvement.
• Find out which tools are both designer-friendly and effective to create awareness.
• Get tips and tricks to help you position yourself in the world of nonprofits.
Antud slaidiprogramm on tehtud TLÜ haridustehnoloogia magistriõppe kodutööks digitaalse meedia sisutootmises. Kasutatud on Junior Achievementi "Majandusõpikut" peatükk 6.
The anscersX multibureau business trade credit report includes the best elements from business credit reports from Dun and Bradstreet, Equifax and Experian, allowing customers to get the information they need to make a credit decision about their customers.
Creditor\'s Rights and Bankruptcy Issues in Real Estate Lawterigrasmussen
Discusses how creditors should deal with a recently filed case, the automatic stay, leasing, use and sale of assets, and nonbankruptcy remedies available to creditors, including receiverships, foreclosures, creditors\' bill, charging order, and assignments for the benefit of creditors
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
Part of the webinar series: COMPLEX FINANCIAL LITIGATION 2022
See more at https://www.financialpoise.com/webinars/
Understanding the details of the cash flow process and proactively managing the process with clients and vendors bodes well for all parties and supports project success.
First Published in Nov 2007 Contract Management magazine of the National Contract Management Association (NCMA)
Analysis of the Supreme Court decision in M&S v BNP Paribas. Their Lordships clarified that the test for implied terms remains strict necessity in the wake of Belize Telecom.
From a presentation I did for Print Magazine.
How good are you? No, we’re not talking about your design chops. We’re talking about creating positive change in the world. Designers everywhere are becoming more involved in good causes—and attracting clients who also want to make a global impact and reach an audience that cares about today’s most important issues.
In this live webcast, web designer for Core Industries and School of Visual Arts professor Daniel Schutzsmith will show how leveraging the power of change-agent thinking—and tapping into the practical web design and intuitive web applications now employed by major philanthropic iniatives—can help you make waves for your clients, your company, and your career.
• Learn about upcoming trends to create audience involvement.
• Find out which tools are both designer-friendly and effective to create awareness.
• Get tips and tricks to help you position yourself in the world of nonprofits.
Antud slaidiprogramm on tehtud TLÜ haridustehnoloogia magistriõppe kodutööks digitaalse meedia sisutootmises. Kasutatud on Junior Achievementi "Majandusõpikut" peatükk 6.
The anscersX multibureau business trade credit report includes the best elements from business credit reports from Dun and Bradstreet, Equifax and Experian, allowing customers to get the information they need to make a credit decision about their customers.
Creditor\'s Rights and Bankruptcy Issues in Real Estate Lawterigrasmussen
Discusses how creditors should deal with a recently filed case, the automatic stay, leasing, use and sale of assets, and nonbankruptcy remedies available to creditors, including receiverships, foreclosures, creditors\' bill, charging order, and assignments for the benefit of creditors
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
Part of the webinar series: COMPLEX FINANCIAL LITIGATION 2022
See more at https://www.financialpoise.com/webinars/
Understanding the details of the cash flow process and proactively managing the process with clients and vendors bodes well for all parties and supports project success.
First Published in Nov 2007 Contract Management magazine of the National Contract Management Association (NCMA)
Defending Against Bankruptcy Avoidance Actions (Series: COMPLEX FINANCIAL LIT...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/defending-against-bankruptcy-avoidance-actions-2/
Assurance Principal Jennifer Goodman presented "What Was the FASB Thinking?," a discussion and examples of unusual accounting rules, at the 2013 Decosimo Accounting Forum hosted by the University of North Alabama on July 19.
Cross Cultural Communications, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Manage Your Customer's Payment With Speed, Accuracy, Reliability and Savings, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Securing Your Transactions in Latin America and Mexico, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Financial Statement Analysis - Reading the Numbers Correctly, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Efficiency Models and Methods to Improve Credit Department Performance, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Dialing for Dollars, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Analyzing Liquidity Using the Cash Conversion Cycle, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Saying Yes to the Sale With Limited Information, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Investigating Your Debtor, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Coloring Your Collections, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Collections Best Practices seminar. 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Antitrust seminar at 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
Training session for the Reliance Credit Network service on anscers.com. Originally presented by Mike Mitchell, President of CMA, at the Reliance Credit Meeting on September 11, 2014.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Exploring Patterns of Connection with Social Dreaming
Adding Insult to Injury
1. Adding Insult to Injury: Bankruptcy Preference & Trade Creditors’ Defenses Presented by DORMAN WOOD, CEW, CCE July 23, 2009 DORMAN WOOD associates, LLC (c) 2009
2. DORMAN WOOD associates, LLC (c) 2009 YOU WANT ME TO PAY BACK HOW MUCH?!!!!!!!!@@@@####$$$%%%%&
3. DORMAN WOOD associates, LLC (c) 2009 TOTAL PAYMENTS LISTED = $17,821,740.18 , COMPLAINT FILED IN COURT ADDED $6,278,812.54 FOR A TOTAL CLAIM OF $24,100,552.72
4. WHAT IS A PREFERENCE? DORMAN WOOD associates, LLC (c) 2009 A preference or preferential transfer is any transfer of property, including money, made by an entity to a creditor of that entity within 90 days prior (including filing date) to the entity’s filing for bankruptcy United States Bankruptcy Code §547(b), 11 U.S.C. The trustee may avoid any transfer of an interest in the debtor in property – (1) to or for the benefit of a creditor; (2) for or on account of an antecedent debt owed by the debtor before such transfer was made; (3) made while the debtor was insolvent; (4) made [a] on or within 90 days before the date of the filing of the petition; or [b] between 90 days and one year before the date of the petition, if such creditor at the time of such transfer was an insider; and (5) that enables such creditor to receive more than such creditor would receive if – [a] the case were a case under Chapter 7 of this title; [b] the transfer had not been made; and [c] such creditor received payment of such debt to the extent provide by the provisions of this title
5. WHO CAN AVOID A TRANSFER? DORMAN WOOD associates, LLC (c) 2009 A bankruptcy trustee or debtor in possession (the unsecured trade creditors’ committee can act on behalf of the DIP) has the power to “avoid” a transfer and recover the property transferred. The property recovered (less the trustee’s fees and legal expenses) is shared with all of the entities creditors. The end result being that companies can be forced to return payments they received within 90 days of their customer’s bankruptcy. A preference claim is intended to discourage unusual action during a debtor’s slide into bankruptcy and to promote equality of treatment among creditors (whether paid or not).
6. DORMAN WOOD associates, LLC (c) 2009 I GOT PAID WITHIN 90 DAYS OF MY CUSTOMER’S BANKRUPTCY, DO I HAVE TO GIVE THE MONEY BACK? NOT NECESSARILY! Some transfers are protected from avoidance by “Affirmative Defenses” set forth in the Bankruptcy Code. “Affirmative” means that the defendant (YOU) will have the burden of proof. DOES THE TRANSFER QUALIFY FOR AN AFFIRMATIVE DEFENSE? Affirmative defenses include: 1) the transfer was made in a contemporaneous exchange for new value to the debtor; 2) the transfer was made in the ordinary course of business; 3) the transfer was a security interest in property securing new value for the debtor; 4) the transfer was made after the creditor provided new value; 5) the transfer was of property with an aggregate value of less than $5,475. CONTEMPORANEOUS EXCHANGE: Payments received as ‘cash on delivery’ (COD) and that result in the immediate shipment to the debtor is described as a contemporaneous exchange and is not recoverable.
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8. DORMAN WOOD associates, LLC (c) 2009 ORDINARY COURSE OF BUSINESS CONT’D: After October 2005 , the Code Required a creditor to only prove 2 components or prongs of “ordinary course” §547 (c)(2)(b) : (a) the debt was incurred by the debtor in the ordinary course of business between the debtor and transferee (creditor); (b) the payment was made in the ordinary course of the business or financial affairs of the debtor and transferee; OR (c) the payment was made according to ordinary business terms used in the industry in which the debtor and transferee operate Components (a) and (b) are considered the “subjective test” and requires testimony from company representatives about the way the two parties had historically conducted business with each other. The transferee (creditor) must Prove that the subject transfer(s) was/were consistent with the past practice between the two parties.
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11. DORMAN WOOD associates, LLC (c) 2009 HISTORICAL PAYMENT ANALYSIS A payment history analysis should extend beyond the 90 day preference period. A payment history analysis should also include at least one year period prior to the beginning of the 90 day preference period. Two years if it is to your advantage. The payment history analysis is used to establish and compare several facts of the relationship between the parties: • DSO – time between invoice date and payment date; the creditor must establish that the range of DSO’s in the preference period is well within the range of DSO’s in the pre-preference period. • Range of Payments – the difference between the shortest payment time and the longest payment time (the low and the high) • Courts have often compared the range of payments between the preference period and the pre-preference period.
13. DORMAN WOOD associates, LLC (c) 2009 OVERALL DSO COMPARISON 1999 2000 2001 DSO AVERAGE VENTURE LINE DSO HISTORY: 73.6 71.1 73.8 72.8 INDUSTRY DSO HISTORY: 63.3 68 58.5 67.3 DSO BRIDGE V MERISEL: 63.7 OVERALL AVERAGE DSO: 67.9
14. DORMAN WOOD associates, LLC (c) 2009 THE MEAN The Mean is the average – it is computed by adding the DSO’s and dividing by the number of invoices. Courts have often considered the Mean as a measure of whether the payment practices during the preference period were ordinary in relation to the payment practices in the pre-preference period. See Official Unsecured Creditors Committee v. Ford Motor Credit Company (In re Ed Jefferson Contracting, Inc.), Bankr. E.D. Mo PAYMENT CONSISTENCY Historical data must establish not only that the payments were within the creditors’ usual payment experience with the debtor, but that the method of payment (i.e., standard company check v cashier’s check or wire transfer) did not change in any manner during the preference period.
15. DORMAN WOOD associates, LLC (c) 2009 ORDINARY BUSINESS TERMS Generally, the harder prong to prove is that payment of the debt was ordinary in the relevant industry . This usually requires expert testimony and external evidence from the creditor’s competitors. Testimony from the creditor’s own employees may be considered self-serving and given little weight by the courts. Sourcing this information can be problematic, as it is often considered proprietary in a competitive industry. Outside experts attempt to confirm this type of information from a variety of sources; i.e., NAICS/SIC, credit reporting agencies, industry credit group statistics and industry trade associations. See In re Bridge Information Systems, Inc. vs Gulfcoast Workstation Corp., Bankr. E.D. Mo 2006
16. DORMAN WOOD associates, LLC (c) 2009 WHAT IS AN INDUSTRY? The case most referred to with respect to establishing what an industry is, is Tolana Pizza Products in which the court stated: “… the most important thing is not that the dealings between the debtor and the allegedly favored creditor conform to some industry norm but that they conform to the norm established by the debtor and the creditor in the period before, preferably well before, the preference period. That condition is satisfied here—if anything……” “ We conclude that “ordinary business terms” refers to the range of terms that encompasses the practices in which firms similar in some general way to the creditor in question engage, and that only dealings so idiosyncratic as to fall outside that broad range should be deemed extraordinary...” See Tolona Pizza Products Corp., U.S. Court of Appeals, 7 th Circuit No. 92-3386, August 19, 1993
17. DORMAN WOOD associates, LLC (c) 2009 BAPCPA RESTRICTIONS SMALL PREFERENCE CLAIMS – No preference claim can be filed unless the total of all alleged preferential transfers received by a particular creditor total at least $5,000. VENUE – Preference claims of less than $10,000 can only be filed in the jurisdiction where the defendant resides ( a corporate creditor ‘resides’ in any district where it has sufficient contacts to subject itself to jurisdiction, so there may be multiple districts where a corporate defendant may be sued)
19. KNOW YOUR ENEMY – Who can collect preference claims DORMAN WOOD associates, LLC (c) 2009 The strategies for defending against a preference claim are clearer if you understand who your opponent is and what his/her incentives are. Preference claims may be brought by any of several parties. These include attorneys representing: • the debtor • court appointed trustee • the unsecured trade creditors committee • bankruptcy plan administrator • collection agency “ Keep your friends close – hold your enemies closer”…An Arabian proverb
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36. DORMAN WOOD associates, LLC (c) 2009 CASES OF INTEREST Bridge Information Systems v Merisel/MOCA - $24.1m preference claim , Bankr. E.D. Mo Plaintiff alleged that certain practices between the parties were not ‘ordinary course’ of business: 1) Use of bank lockbox system for collection of customer payments; 2) Use of remittance advice for payment application; 3) Monthly calls by creditor to debtor regarding payments; 4) Creditor extended greater credit limit and longer terms than competitors; 5) Terms listed on creditor’s web page were not the terms extended to debtor; 6) Terms listed on creditor’s web page were not normal for the industry; 7) Product sold by creditor could have been purchased from other sources by debtor; 8) Original invoices issued to debtor by creditor could not be reproduced; 9) Accuracy or validity of reprinted invoices could not be verified due to a computer system conversion. Bridge Information Systems v Gulfcoast Workstation Corp. - $2.2m preference claim – appeal of previous decision , Bankr. E.D. Mo Gulfcoast Workstation Corp. filed an appeal in an effort to have an earlier court decision against their ordinary course of business defense overturned. In the original suit, the plaintiff alleged that business transactions between the parties were not in the ordinary course of business and that defendant had failed to prove their new value defense. In the original suit, plaintiff had alleged that the use of remittance advice by Bridge and payment application by Gulfcoast in accordance with the remittance advice was not ordinary. Gulfcoast offered no evidence to support their defense other than the testimony of their controller and general manager, which the court found insufficient. The appellate court upheld the district court’s original decision. Hardwood P-G, Inc/Custom Forest Products v Columbia Forest Products - $3.1m preference claim, Bankr. W. D. Texas Plaintiff alleged that certain practices between parties were not ‘ordinary course’ of business: 1) Changed credit terms; 2) Stopped selling certain products to debtor; 3) Did not adhere to corporate credit/collection policy; 4) calling customer regarding late payments; 5) No written document retention policy
37. DORMAN WOOD associates, LLC (c) 2009 SUGGESTED BOOKS FOR YOUR LIBRARY Bankruptcy In Practice, 4 th Edition , American Bankruptcy Institute, $125. www.abiworld.org/publications/bookstore Preference Handbook, 2 nd Edition , American Bankruptcy Institute, $45.www.abiworld.org/publications/bookstore The Electronic Evidence and Discovery Handbook , American Bar Association, $129.95 www.abanet.org/ababookstore NOTE: None of the information contained in or discussed during this presentation should be considered as legal advice. Advice of competent legal counsel should always be sought in bankruptcy and other creditors’ rights matters.
38. DORMAN WOOD associates, LLC (c) 2009 Th-Th-Th-Th-Th-Th-Th-Th-Th-That's all folks! www.witness4u.com [email_address] V. 719-641-0169 F. 623-584-6041