Tag Archives: 546(e)

Recent Decision May Assist Challenges to Alleged Fraudulent Transfers

A recent decision by the Bankruptcy Court for the Southern District of New York may enhance the ability of bankruptcy trustees and creditors committees to challenge allegedly fraudulent transfers that could qualify for protection under the “safe harbor” of section 546(e) of the Bankruptcy Code.  Continue reading

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Bankruptcy Judge Criticizes Bankruptcy Code Section 546(e)

The House Judiciary Subcommittee on Regulatory Reform, Commercial, and Antitrust Law recently held hearings regarding certain provisions of the Bankruptcy Code, including the safe harbor from preference and fraudulent conveyance claims for “settlement payments.” Continue reading

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Key Decision Allows Massive Lyondell Shareholder Clawback Litigation to Move Forward

On January 14, 2014, Judge Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York issued a long-awaited decision denying in large part the motion to dismiss state law fraudulent conveyance claims brought on behalf of Lyondell creditors against thousands of shareholders who received proceeds from Lyondell’s ill-fated leveraged buyout.  Judge Gerber ruled that the “safe harbor” protections afforded to certain securities transactions under Section 546(e) of the Bankruptcy Code do not apply to shield the Lyondell shareholders from liability under state law fraudulent transfer causes of action. Continue reading

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