Articles

Insolvency Along the NAFTA Highways: What You Need to Know: Mexican Paper

By José Víctor Rodríguez Barrera
This article summarizes the Mexican Bankruptcy Law (Ley de Concursos Mercantiles) published in the Federal Official Gazette on May 13, 2000, repealing the Law of Bankruptcy and Suspension of Payments of December 31, 1942, published on April 20, 1943.

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Insolvency Along the NAFTA Highways: What You Need to Know: Canadian Paper

By Brett Harrison and Julien Brazeau
The article aims to provide an overview of the Canadian insolvency process while highlighting important differences between the US and Canadian insolvency regimes and identifying current legislative initiatives which could significantly impact the insolvency proceedings of US corporations doing business in Canada.

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In Ratings We Trust? The Role Played By Rating Agencies in the Subprime Debacle

By Andrea Kim and Reda Dennis
While there is a wide spectrum of victims in the subprime debacle that now carries an estimated $600 billion price tag, it seems clear that the responsible parties are an insular group. Ultimately, the victims will look for their white knight amongst the bond insurers, the bench, and the bar.

Proving Solvency Through Evidence of Public Trading

By Michael R. Lastowski
Under the Bankruptcy Code, to avoid and recover transfers as preferences or fraudulent conveyances, a trustee must prove a debtor’s insolvency at the time of the transfers. In preference cases, the trustee benefits from a presumption of insolvency during the ninety-day period preceding the filing date. Otherwise, the trustee must prove insolvency, which the defendant may attempt to rebut.

New Meaning of Ordinary: Anything Short of Extraordinary

By Pamela Egan Singer
The Bankruptcy Abuse Prevention and Consumer Protection Act (“the Bankruptcy Reform Act”) has significantly bolstered the ordinary course of business defense to a preference action.[3] Under the new version of Bankruptcy Code section 547, a defendant can defeat a preference by proving (i) that the transfer was made in payment of a debt incurred by the debtor in the ordinary course of business and either (ii) that the transfer was made in the ordinary course of business between the debtor and the transferee or (iii) that such transfer was made according to ordinary business terms.