By Jeffery Black (AU) and Nicole Schaillee on Posted in AustraliaAustralian insolvency laws recently underwent the most comprehensive review and reform since the early 1990s. Part of those reforms included the introduction of: * a ‘safe harbour’ for directors in respect of the insolvent trading offence; and * a stay on the exercise of certain rights (including termination rights) for counterparties (or ‘ipso facto’ clauses).… Continue Reading
By Kristian Gluck and Shivani Shah on Posted in USIn a decision significantly impacting the ability of a plaintiff to prosecute avoidance actions, the United States Supreme Court, in Merit Management Group, LP v. FTI Consulting, Inc., 583 U.S. ___ (2018), unanimously held that a transfer of funds, where a financial institution served as a mere conduit, does not entitle the recipient of the… Continue Reading
By Christy Rivera (US) on Posted in USFocusing on the plain language provided in Bankruptcy Code section 546(e), the Court of Appeals for the Second Circuit this week held that customers of the now defunct Bernard Madoff Investment Securities LLC can retain funds they had withdrawn from their customer accounts before the Madoff firm was placed into liquidation. Irving Picard, the trustee… Continue Reading
By Francisco Vazquez (US) on Posted in USOn the heels of the New York District Court’s decision in the Tribune Company fraudulent conveyance litigation, the New York Bankruptcy Court has similarly held that section 546(e) of the Bankruptcy Code, which protects settlement payments from fraudulent transfer claims brought by a bankruptcy trustee under the Bankruptcy Code, does not preclude individual creditors, or… Continue Reading
By Christy Rivera (US) on Posted in USThose active in the derivatives market may be familiar with the Bankruptcy Code’s “safe harbor” provisions. These provisions are intended to protect derivatives participants from some of the debtor-friendly effects of bankruptcy, all in the name of ensuring market stability if a large derivatives market firm were to fail. The safe harbor provisions have been… Continue Reading
By on Posted in USA recent decision issued by the U.S. District Court for the Southern District of New York multi-district litigation In re Tribune Company may have altered the landscape for litigating avoidance actions and narrowed the Bankruptcy Code’s “safe harbor” protections against the avoidance of settlement or swap payments. Section 546(e) of the Bankruptcy Code prevents a… Continue Reading
