Ronald Gart and Tobi Pinsky Published in Chicago Title Newsletter
"Creditors Rights: Commercial Lenders Can Breathe Easier"

Real Estate attorneys Ronald Gart and Tobi Pinsky's white paper is published in the April 2011 Chicago Title Newsletter. The authors discuss the recent case 3V Capital Master Fund, Ltd. v. Official Committee of Unsecured Creditors of Tousa, Inc., in which the U.S. District Court for the Southern District of California reversed the earlier and controversial decision of the U.S. Bankruptcy Court and found that (i) commercial lenders (“Existing Tousa Lenders”) who obtained proceeds of new loans made by third-party lenders (“New Lenders”) to Tousa, Inc. (“Tousa”) and certain of its subsidiaries, who themselves were not the beneficiaries of or liable on the repaid indebtedness, were not obligated to disgorge those proceeds on a theory of fraudulent transfer under Section 548 of the Bankruptcy Code, and (ii) new liens granted in favor of the New Lenders were not voidable transfers.
 
Click here to view the full article: http://dccommercial.ctic.com/newsletter/June_2010/DC-APRIL-2011-Newsletter.html