What It Means to Have $622 Million Kept out of the Babcock & Wilcox Bankruptcy by Elizabeth Magner, Esq.

icTendiche United States Bankruptcy Court for the Eastern District of Louisiana has issued an opinion holding that $622 million in transfers made by the Babcock & Wilcox Company ("B&W") are not subject to return under Louisiana's Revocatory Action. The case involved the transfer of various assets and the forgiveness of intercompany obligations by the debtor, B&W, to its parent, Babcock & Wilcox Investment Company ("BWICO"). The transfers were part of a corporate restructuring program completed 18 months before B&W's bankruptcy filing. BWICO is the wholly owned subsidiary of McDermott International, Inc.

B&W filed its voluntary petition for …