NABT Annual Conference 2024

The panel will begin with a brief review of common trustee avoidance powers and claims before diving deeper with a discussion of the burgeoning merchant cash advance industry (MCA), which has exploded in the last decade. MCAs provide fast money to troubled companies on onerous terms making MCAs frequent participants in bankruptcy proceedings, and potential targets of a trustee’s avoidance powers. The panel will explore MCAs, their structure, and potential claims trustees can lodge against them to bring money into the estate. The panel will conclude with robust case studies including the FKF 3 case involving tough avoidance claims, withdrawal of the reference, a jury trial on avoidance actions, attacking owners of entity targets, and getting prejudgment interest on a judgment, and the infamous Fyre Festival case involving attacking transfers to numerous models and musical acts where the funds they received never flowed through the debtor’s coffers.