is an important reminder that although parties may structure a transaction to
look like a loan, courts have the inherent authority to determine what the
transaction really is and are not bound by what it is called. The decision
warns that payments made on account of a recharacterized loan may constitute a
distribution on account of an equity interest, subject to “clawback” as a
The article was published by Law360 on May 6, 2013. You can read the entire article by clicking on the article's title above, or on this link.