Restructuring Perspectives

Rite Aid is now in its second bankruptcy in less than two years. Despite the failed reorganization efforts of the first bankruptcy, nearly a thousand complaints were recently filed in the Bankruptcy Court for the District of New Jersey seeking to avoid alleged “preference” payments that were made over two years ago. This places many creditors in the difficult position of not receiving distributions on account of unpaid claims and now having to defend against preference claims. Understanding the policies behind preference claims as well as applicable defenses can place ... Continue Reading