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In re TransTexas Gas Corp, 08-41128

In re TransTexas Gas Corp, 08-41128
Issued February 10, 2010
Heard in U.S. 5th Circuit Court of Appeals
Summary In two related cases involving a bankrupt corporate debtor, rulings rejecting (i) a claim by corporate debtor’s former CEO that the severance payments he received from the company were not fraudulent transfers, and (ii) a claim by a trustee in a related matter that the estate was covered under a policy issued by appellee-insurer, are affirmed where: 1) the severance payments made to the CEO after his dismissal were obligations incurred by debtor within two years of its petition date and thus constituted fraudulent transfers; 2) debtor did not receive reasonably equivalent value for the payments to the CEO; and 3) the CEO’s repayment of the amounts received did not constitute an insurable “Loss” under the insurance policy.

Source: FindLaw.com

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