Brexit and Bankruptcy

How can a macro-economic event, such as when the United Kingdom voted to exit the European Union, impact everyday people and corporations and help them emerge from bankruptcy protection in the United States? When the UK voted to exit the EU, this caused a significant panic in the investment community, particularly investments in foreign stocks. …

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Preference Analysis – the Median Absolute Deviation Method (Part 2)

To illustrate the robust nature of the median absolute deviation, consider the following hypothetical dataset of 250 payments. This payment data does not exhibit the normal distribution pattern which is not uncommon, as discussed above.  Of particular importance is the small number of payment observations in which the company took significantly longer than usual to …

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Preference Analysis – the Median Absolute Deviation Method (Part 1)

A wide range of techniques have been employed by financial experts to determine a relevant range representing the ordinary course of payment terms between the parties.  In some instances, in order to present an analysis that is relatively easy to explain, a financial expert will calculate a standard deviation for the payment history of the …

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Preference Analysis – The Pillowtex Decision

On April 14, 2010, Judge Kevin J. Carey, Chief Judge of the United States Bankruptcy Court for the District of Delaware, issued a decision in the Pillowtex bankruptcy case that has significant implications with respect to the ordinary course of business (“OCB”) defense. Pillowtex filed for bankruptcy prior to the 2005 expansion of the preference …

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