PEM Entities, LLC v. Province Grande Olde Liberty, LLC: Fourth Circuit Recharacterizes Insider Debt Purchase as Equity | Practical Law
In PEM Entities, LLC v. Province Grande Olde Liberty, LLC (In re Province Grande Olde Liberty, LLC), the US Court of Appeals for the Fourth Circuit affirmed a decision recharacterizing as equity a portion of a creditor's purchase of a loan made to a debtor, holding that the debtor, who used the purchaser as an extension of itself to satisfy the loan in a settlement, could not hide behind the original debt transaction.