WebFeb 9, 2009 · The decision in In re SemCrude LP makes clear that triangular setoff is a thing of the past, at least in the context of contracts not subject to the protections afforded by … WebApr 23, 2024 · In In re Orexigen Therapeutics, Inc., Judge Gross held that the mutuality requirement must be strictly construed, declining to find mutuality in a triangular setoff between the debtor, a parent entity that owed the debtor money, and that entity’s subsidiary, which was a creditor.
Delaware Bankruptcy Court Disallows Triangular Setoff
WebOct 12, 2011 · Triangular Setoff. Section 553(a) of the Bankruptcy Code provides, in relevant part, that [e]xcept as otherwise provided in this section and in sections 362 and 363 of this title, this title does not affect any right of a creditor to offset a mutual debt owing by such creditor to the debtor that arose before the commencement of the ... WebJun 13, 2024 · Another decision has been issued that reinforces that section 553 does not allow setoff without mutuality, or "triangular setoff." On November 13, 2024, Judge Gross of the United States Bankruptcy Court for the District of Delaware denied a motion in In re Orexigen Therapeutics, Inc. to affect a triangular setoff under section 553 of the … crabby deal
Triangular Setoff Impermissible Under Section 553: No …
WebNov 5, 2024 · In the triangular set-off, A attempts to set off the amount it owes to B against the amount that C owes to A. The validity of triangular set-off in the bankruptcy context, … WebApr 19, 2024 · In a March 19, 2024, decision in In re Orexigen Therapeutics, Inc., the Third Circuit joined the Second, Fifth and Seventh Circuits, prohibiting triangular setoff in a … WebJul 13, 2024 · Triangular setoffs are often negotiated in contracts governing complex business dealings as a means of extinguishing debt. However, in bankruptcy proceedings they can create headaches unless certain key steps are taken to protect one’s business. A setoff occurs when A owes B a debt, and B owes A a debt. These mutual debts can be set … district of sechelt zoning bylaw