This advisory discusses In re Adamson Apparel, Inc., in which the Court of Appeals for the Ninth Circuit considered whether so-called “Deprizio waivers,” where an insider guarantor waives indemnification rights against a debtor, can insulate the guarantor from preference liability arising from payments made by the obligor to the lender. The Ninth Circuit held that if such a waiver is made legitimately—not merely to avoid preference liability—then the guarantor is not a “creditor” and cannot be subject to preference liability. Click here for the full advisory. [...]Read more
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