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Chapter 7 Section 546(e)

King & Spalding

Safe Harbor Provision of Section 546(e) Applies to Privately Held Securities

King & Spalding on

On May 2, 2023, the U.S. District Court for the Southern District of Indiana reversed a bankruptcy court, finding that Section 546(e) of the Bankruptcy Code preempts state law fraudulent transfer claims and that the...more

Nelson Mullins Riley & Scarborough LLP

Bankruptcy Court Narrowly Construes Section 546(e) Safe Harbor

On August 18, 2022, the United States Bankruptcy Court for the Southern District of Indiana, in In re BWGS, LLC, No. 19-01487-JMC-7A, 2022 WL 3568045 (Bankr. S.D. Ind. Aug. 18, 2022), narrowly interpreted the safe harbor...more

Dechert LLP

Securities Contract Safe Harbor Defeats Attack on Global Restructuring

Dechert LLP on

Section 546(e) of the Bankruptcy Code excepts certain transfers made to certain protected parties, under or in respect of securities contracts, from avoidance as preferences or constructively fraudulent transfers. A recent...more

Dechert LLP

Payments to Investors in a Securitization Structure Protected from Avoidance

Dechert LLP on

In what appears to be a matter of first impression, the U.S. Bankruptcy Court for the Northern District of Illinois recently held that payments made to investors in a two tiered securitization structure commonly employed in...more

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