Representative Work: Refusal of Preference Claim
Sussman Shank represented a publicly-held company in a bankruptcy pending in the Southern District of New York. Knowing our client had preference exposure of $5 million, we negotiated assumption of a contract between our client and the debtor. As a result, most of the pre-petition default was paid, the debtor paid our client for services provided post-petition, and the client received an administrative expense claim (essentially elevating its claim from a pre-petition unsecured claim). In addition, we defeated the subsequent preference claim based on case law prohibiting the debtor from pursuing a preference claim from a creditor whose contract has been assumed.
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