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Case note: Intellectual property had zero value

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SKU: VLBjf133. Category: .

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Abstract: In a recent case, a U.S. Bankruptcy Court concluded that certain intellectual property received by the debtor had no value. As a result, the property didn’t constitute “reasonably equivalent value” in exchange for two mortgages challenged as fraudulent transfers. This article reviews the case, in which the court found the defendants’ valuation expert’s use of the cost method and income method to be inappropriate. Citation: Holber v. M&T Bank, et al. (In re: Sheffler), Case No. 09-22088REF, Adv. No. 09-2177 (Bankr. E.D. Pa. June 5, 2012).

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