The Potential Implication of the Supreme Court’s Holding in Merit Management
Author: Brandon M. Hammer.; Reshama J. Patel.
Source: Volume 35, Number 06, June 2019 , pp.71-76(6)
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Abstract:
The Supreme Court’s Merit decision is its first holding regarding the scope of the safe harbors in the U.S. Bankruptcy Code for securities contracts and other financial contracts. The authors discuss the case and then turn to (1) the discretion of a bankruptcy trustee to determine what constitutes a transfer for purposes of the Code’s avoidance provisions; (2) preemption of avoidance actions under state law; (3) the definition of “financial institution” in the Code; and (4) textualism in interpreting the scope of safe harbor protections.Keywords: Merit Mgmt. Grp., LP v. FTI Consulting, Inc.,; Constructive Fraudulent Conveyance; Section 546(e); Determining What Constitutes a Transfer
Affiliations:
1: Cleary Gottlieb Steen & Hamilton LLP; 2: Cleary Gottlieb.