Fraudulent conveyance
A transfer or obligation that may be challenged under applicable fraudulent-transfer or voidable-transaction law. Grounds can include actual intent to hinder, delay or defraud creditors, or insufficient value combined with specified financial conditions; the tests vary by jurisdiction.
Fraudulent conveyance in round numbers
Hypothetical: a company pays a US$30m dividend while facing financial pressure. Assess the applicable legal tests, value received, intent, financial condition and timing. The dividend amount alone does not establish a violation, and positive accounting equity or current profit alone would not establish solvency.
Source: 11 U.S.C.548: one U.S. bankruptcy fraudulent-transfer framework.
Terms Related to Fraudulent conveyance
Chapter 11 bankruptcy · Dividend recapitalization · Going concern · Fiduciary duty · All of the glossary