Fifth Circuit Holds Avoidance Actions Can Be Sold in Bankruptcy Cases
The Fifth Circuit Court recently ruled that companies in bankruptcy can sell their legal rights to recover certain payments made before filing (avoidance actions) to outside parties. This decision, made on January 22, 2024, in Briar Capital Working Fund Capital, L.L.C. v. Remmert (In Re South Coast Supply Company) applies not only to preference actions…