Two recent decisions in the Madoff bankruptcy cases illustrate that the legacy of Bernie Madoff will long survive the man himself. Bernie Madoff died on April 14, 2021,.
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Structuring and Practice for Aircraft Leases to Prevent Lease Payments From Being Clawed Back in a Lessee Bankruptcy Friday, April 9, 2021
Key Points
The risk that prepetition lease payments made by a lessee that is a debtor in a US bankruptcy will be clawed back from an aircraft lessor can be reduced if:
the lease is a true lease rather than a disguised secured loan or finance lease
one or both of basic rent and maintenance reserves are payable in advance (i.e., at the beginning of a rent period rather than at the end)
basic rent and maintenance reserves are payable monthly rather than quarterly or semiannually