Sec. 306. Preferential compensation transfer
258 words·~1 min read·
/bill/116/s/4089/is/section-306A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 547 of title 11, United States Code, is amended by adding at the end the following: The trustee may avoid a transfer— made— to, or for the benefit of, an insider of the debtor (including an obligation incurred for the benefit of an insider under an employment contract), a senior executive officer of the debtor, the 20 highest compensated employees of the debtor who are not insiders or senior executive officers, any department or division manager of the debtor, or any consultant providing services to the debtor made in anticipation of bankruptcy; or in anticipation of bankruptcy to a consultant who is formerly an insider and who is retained to provide services to an entity that becomes a debtor (including an obligation under a contract to provide services to such entity or to a debtor); and made or incurred on or within 1 year before the filing of the petition.
No provision of subsection
(c)shall constitute a defense against the recovery of a transfer described in paragraph (1). The trustee or a committee appointed pursuant to section 1102 may commence an action to recover a transfer described in paragraph (1), except that, if neither the trustee nor such committee commences an action to recover the transfer by the time of the commencement of a hearing on the confirmation of a plan under section 1129, any party in interest may apply to the court for authority to recover the claims for the benefit of the estate. The costs of recovery shall be borne by the estate. .