Article: In Re TOUSA, Inc.: Implications For Solvency Opinion Providers.(Case overview)

The bankruptcy court's opinion exemplifies the second guessing that can confront solvency opinion providers and highlights issues that providers should carefully vet with experienced legal counsel.

On October 13, 2009, the U.S. Bankruptcy Court for the Southern District of Florida entered a final judgment against the senior lenders of liquidating homebuilder TOUSA, Inc., in a fraudulent transfer proceeding. Pursuant to federal bankruptcy law (the code), and New York and Florida state law, the court ruled that money lent to Tousa by a group of first and second lien lenders before Tousa and certain of its affiliates filed for bankruptcy protection on January 29, ...

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