Tricia Schwallier and Michael Brandess author article entitled “Ponzi Scheme Lender May Be On The Hook, After All!” on Commercial Bankruptcy Investor website
On November 21, 2016, Commercial Bankruptcy Investor, a DailyDAC website, published an article written by Tricia Schwallier and Michael Brandess entitled “Ponzi Scheme Lender May Be On The Hook, After All!” The article discusses the Sixth Circuit’s recent decision in In re Fair Finance Company v. Textron Financial Corporation to revive a trustee’s $17 million avoidance and claw-back suit against a lender. The court found that the lender’s existing security interests could be extinguished via novation in the form of an amended and restated loan and security agreement. Commercial Bankruptcy Investor is a website designed for and targeted to reading by business owners, executives, the private equity and venture capital communities, hedge fund managers, and professionals such as attorneys and investment bankers who do not consider their specialties to be bankruptcy, restructuring, or insolvency. Written in plain English, the articles which appear on these websites are intended to educate and inform.