Creditors, Trustees, Financial Institutions

Trustee’s Suit Seeking Clawback of Bank Fees as Fraudulent Transfers Survives Summary Judgment

King & Spalding on 5/21/2025

On March 12, 2025, the U.S. Bankruptcy Court for the District of Delaware denied four banks’ motion for summary judgment in an action seeking to claw back $35 million in fees associated with a $1.8 billion loan that allegedly...more

Seventh Circuit Addresses Scope of Section 546(e)

Patterson Belknap Webb & Tyler LLP on 4/1/2024

We have previously blogged about the section 546(e) defense to a trustee’s avoidance powers under the Bankruptcy Code. A trustee has broad powers to set aside certain transfers made by debtors before bankruptcy. See 11 U.S.C....more

Fifth Circuit Holds Avoidance Actions Can Be Sold

Dorsey & Whitney LLP on 2/20/2024

Joining the Eighth and Ninth Circuit Courts of Appeals, the Fifth Circuit Court of Appeals recently held that a debtor or trustee can sell its avoidance actions to third-party, non-estate representatives. See Briar Capital...more

Second Circuit Clarifies Tribune in New Decision

Patterson Belknap Webb & Tyler LLP on 12/27/2023

We have previously blogged about the section 546(e) defense to a trustee’s avoidance powers under the Bankruptcy Code. A trustee has broad powers to set aside certain transfers made by debtors before bankruptcy. See 11...more

Tribune District Court Rules That LBO Payments May Not Be Avoided Because Debtor Was "Customer" of "Financial Institution"

Jones Day on 6/19/2019

In In re Tribune Co. Fraudulent Conveyance Litig., 2019 WL 1771786 (S.D.N.Y. Apr. 23, 2019), the U.S. District Court for the Southern District of New York denied a litigation trustee’s motion to amend a complaint seeking to...more

Bankruptcy Code’s Safe Harbor Defense Eliminated by Supreme Court; Variant Defense May Survive

Skadden, Arps, Slate, Meagher & Flom LLP on 4/26/2018

In a unanimous decision in Merit Mgmt. Grp., LP v. FTI Consulting, Inc., the U.S. Supreme Court addressed the scope of a Bankruptcy Code exception to the “avoiding powers” of a bankruptcy trustee or Chapter 11...more