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The article discusses section 546(e) of the U.S. Bankruptcy Code which provides a carte blanche gift, a signed blank cheque, to corporation for redemption its own stock. It mentions that parties must refer to corporate and criminal laws as a form of legal fiction before seeking to avoid and recover payments made to shareholders on occurrence of bankruptcy. In Enron Corp. v. Bear Stearns Int'l, Ltd. case, difference between "void" and "voidable" under Bankruptcy Code were discussed.

The article focuses on the avoidance of prepetition transfers by the trustee during bankruptcy. Topics include the difference between preferential transfers and fraudulent transfers, the liability of the bankruptcy trustee, and the commencement of avoidance actions. Information is provided on the look-back period.