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The US Court of Appeals for the Third Circuit affirmed a decision of the US Bankruptcy Court for the District of Delaware in the case of case of Schubert v Lucent Techs Inc, involving what was labeled a "strategic partnership" between Lucent Technologies Inc ("Lucent") and Winstar Communications Inc ("Winstar") and its wholly owned subsidiary Winstar Wireless Inc ("Wireless"). The case is important to lenders because it offers an analysis of how a creditor may become a "nonstatutory" insider subject to a one-year rather than 90-day preference period for noninsider creditors when the "earmarking" defense to a preference action applies. Due to the close relationship between an insider and a debtor the courts more closely scrutinize transactions between them. This case is an important exam...
By Abbe Smith Register Staff asmith@nhregister.com NEW HAVEN -- The property that houses the Whalley Avenue headquarters of Start Community Bank went on the auction block Friday, but ultimately was returned to the creditor holding the mortgage.
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