Overview
Cory Kandestin graduated first in his class at Vanderbilt University Law School.
Cory is a bankruptcy litigator. His practice includes litigating fraudulent transfer actions, valuation and solvency issues, evidentiary hearings, and appeals. Cory also has significant experience leading special committee investigations.
PRACTICES
Select Experience
- Ruby Pipeline, L.L.C.: Co-counsel to debtor and led special committee investigation into claims against parent entities
- Mallinckrodt Plc: Led a segment of the investigation on behalf of independent directors evaluating viability of potential claims against affiliates
- Dunn Paper, Inc.: Led special committee investigation into potential related-party claims
- Energy Alloys, Inc.: Represented special committee investigating related-party transactions
- VIVUS, Inc.: Represented special committee investigating viability of debtor claims
- Chaparral Energy, L.L.C.: Represented debtor in Third Circuit appeal of class proof of claim
- Education Corporation of America: Represented receiver in dismissal of involuntary bankruptcy petition
- WMC Mortgage: Represented special committee investigating parent transactions
- Physiotherapy Holdings: Represented former owners in fraudulent transfer action
- Rockport Company: Represented debtor in contested DIP financing proceedings
- Horsehead Holding: Represented official equity committee in contested confirmation trial
- Skye Mineral Partners: Represented company in dismissal of involuntary bankruptcy petition
- Touch America: Represented asset purchaser in litigation over contested property
- Constar/Capsule International Holding: Represented former debtors’ counsel in malpractice litigation
- Conex Holdings: Represented pre-bankruptcy sellers of company who were sued for breach of fiduciary duty and fraudulent transfer
- Franklin Bank Corporation: Represented indenture trustee in successful appeal of adverse ruling
- Digital Domain: Represented foreign defendants in fraudulent transfer action seeking to avoid sale transaction
- Radnor Holdings Corporation: Represented secured lender against claims of fraud and misrepresentation
- Security National Properties: Represented bank acting as agent for lenders in contested plan confirmation
- Cynergy Data: Defended former shareholder in fraudulent transfer and fiduciary duty litigation brought by debtor
- Reliant Energy Channelview: Represented debtor in litigation with stalking horse bidder and litigation with asset purchaser
- Trident Microsystems: Acted as special counsel to Cayman Islands official liquidators
- Pitt Penn Holding: Defended clearing broker sued by debtor
- Eclipse Aviation: Represented noteholders intervening in constructive trust litigation between debtor and former customers
- Magna Entertainment: Represented debtor in litigation against former owner
- Charys Holding: Represented debtor in contested confirmation litigation
- Linens ‘n Things: Provided variety of litigation services to this debtor, including defense of Rule 2004 motion, enforcement of automatic stay, evaluating and commencing multiple preference actions
- Diamond Glass: Represented debtor’s principal stockholder in guaranty litigation with lenders
- Teleglobe Communications: Represented debtor in fiduciary duty litigation against parent company
- Vanderbilt University Law School, J.D., 2007
Founder’s Medal for First Honors
Order of the Coif - McGill University, B.A., with distinction, 2004
Education
Publications
Are Avoidance Recoveries Capped in the Amount of Unpaid Claims?
ABI Journal | June 2020
Consider this scenario: A debtor confirms its plan and transfers avoidance actions to a litigation trust. The trust then sues the debtor’s former owner, who sold the company through a leveraged transaction prior to bankruptcy, on the basis that the sale was a fraudulent transfer. Let’s assume that the litigation trust sues to recover the full…
The Balance Sheet Test in Fraudulent Transfer Cases: Is It Appropriate to Fair Value Liabilities?
Insights | Winter 2020
Proving insolvency is an important element of a fraudulent transfer claim. Therefore, it issurprising that courts diverge on how they interpret the most basic of the solvency tests,the balance sheet test. Some courts hold that the balance sheet test compares the recordedamount of liabilities to the fair value of assets. Other courts hold that the balance…
State Attorney-Client Privilege Rule Incorporated into Federal Law
Law Journal Newsletters | September 2018
Because state law applies at the time a transaction is negotiated, the parties might assume — reasonably so — that state privilege law will govern communications with their attorneys and financial professionals. But what happens if, years later, a suit is filed in federal court and brings claims under federal law? Does state privilege law still…
State Attorney-Client Privilege Incorporated Into Federal Law
The Bankruptcy Strategist | July 2018
Fraudulent transfer plaintiffsfrequently challenge transactionsthat they say contributed tothe company’s insolvency: leveragedbuyouts, cash-out mergers,share redemptions or othermajor transactions where thecompany parts with assets orincurs liabilities. State law (oftenDelaware law) typically governsthese types of transactions,and structuring them usually requiresthe involvement of attorneys,financial professionals andsometimes investment bankers. Because state law applies atthe time the transaction is negotiated,the parties…
When a Settlement No Longer Is Consensual
ABA | August 4, 2014
A quick review of Bankruptcy Rule 9019 makes clear that the settlement requires court approval. But does this mean that no settlement is binding until approved by the court, such that a party can unilaterally walk away before that point?
Tracing Del. Bankruptcy Court’s Unclear Tracing Rules
Delaware Business Court Insider | May 22, 2013
An inherent tension exists between the Bankruptcy Code and the common-law doctrine of constructive trust.
View Emerging That Stern v. Marshall Does Not Apply to Fraudulent Transfer Claims
Delaware Business Court Insider | May 23, 2012
Since the Supreme Court decided Stern v. Marshall nearly a year ago, courts have diverged sharply on whether bankruptcy courts still have authority over fraudulent transfer claims.
Delaware’s Solvency Test: What Is It and Does It Make Sense?
Delaware Journal of Corporate Law | 2011
This article examines the ambiguities in Delaware solvency law and recommends that the Delaware courts clarify the law and adopt uniform solvency tests.
- “The Duty to Creditors in Near-Insolvent Firms: Eliminating the Near-Insolvency Distinction,” Vanderbilt Law Review, 2007 (quoted in Sanford v. Waugh & Co., Inc., 328 S.W.3d 836, 844 (Tenn. 2010)).
Pro Bono Activities
- Child Attorney, Delaware’s Office of the Child Advocate
Recognition
- Super Lawyers, 2017
- Delaware Today Top Lawyer, 2021
Bar Admissions
- Delaware, 2007