U.S. High Court Will Not Hear Bankruptcy Case Dealing With 'New Value' Defense

U.S. High Court Will Not Hear Bankruptcy Case Dealing With 'New Value' Defense

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 7 refused to hear a case in which a Chapter 7 trustee argued that a bankruptcy estate should be permitted to recover more than $1.37 million that an insurance company received from a debtor company because the insurer failed to show that the transfer met the "new value" standard in the Bankruptcy Code, which permitted the insurer to hold on to the property rather than return it to the bankruptcy estate (Stanley Marvin Campbell v. The Hanover Insurance Company, No. 13-16, Chapter 7, U.S. Sup.).

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