who keeps the recovered funds, creditors or the federal government?
In one corner are Enron’s creditors. In the opposite corner are the Securities and Exchange Commission (SEC) and the shareholders. The purse they are fighting over is the $12 million forfeited to the SEC by Andrew Kopper, a former company executive. Federal bankruptcy law says a debtor’s money goes first to creditors, and any remainder is distributed to shareholders. Usually, though, shareholders receive nothing. The SEC’s efforts may change this. The bankruptcy court issued a temporary injunction blocking transfer of the funds until a hearing where the SEC is expected to oppose the unsecured creditors’ motion to seize the funds. Back to Bankruptcy Developments Preference update: what is the “industry standard” of the ordinary course of business defense? Your company is paid by a customer according to history of the parties. The customer, however, files bankruptcy and the trustee seeks to recapture payments during the 90 days-the preference suit. If you present the payment history of t
