Fraudulent Transfer Claims After Merit Management v. FTI: Implications for Safe Harbor Litigation
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide bankruptcy and insolvency counsel with a review of the Supreme Court's decision in Merit Management Group v. FTI Consulting, holding that the §546(e) safe harbor does not protect allegedly fraudulent transfers in which financial institutions served as mere conduits. Because the decision is the Supreme Court's first to address safe harbors under the U.S. Bankruptcy Code, the panel will also discuss the decision's impact on how lower courts will interpret safe harbors more generally.
- Overview of Merit Management v. FTI
- Merit's impact on other fraudulent transfer litigation
- Practical implications for safe harbor issues in bankruptcy proceedings
- Applicability of safe harbor defenses to claims outside bankruptcy
The panel will review these and other essential questions:
- What are the key takeaways and implications of the decision?
- What is the trustee's enhanced ability to recover fraudulent transfers?
- How does the decision expose entities to fraudulent transfer litigation risk?
- What effect does the Court's decision have on other safe harbor disputes, such as what instruments constitute qualified financial contracts covered by the statute?
- What is the applicability of the bankruptcy safe harbor exemptions in non-bankruptcy court fraudulent transfer suits?
James T. Bentley
Schulte Roth & Zabel
Mr. Bentley represents clients in complex transactions, litigation financing, advisory matters relating to... | Read More
Mr. Bentley represents clients in complex transactions, litigation financing, advisory matters relating to restructuring, litigation, reorganizations and out-of-court workouts across a broad range of industries, including automotive, gaming, restaurants, retail and manufacturing. He regularly collaborates with clients on investments in distressed and bankrupt companies with complex corporate and capital structures, including credit and indenture analysis, exit strategies, including negotiation of plans of reorganization, financings and acquisitions.He regularly negotiates loan modifications, forbearance agreements and other workout solutions.Close
William H. Gussman, Jr.
Schulte Roth & Zabel
Mr. Gussman focuses on complex commercial litigation, including securities fraud actions, fraudulent transfer actions,... | Read More
Mr. Gussman focuses on complex commercial litigation, including securities fraud actions, fraudulent transfer actions, M&A litigation and partnership disputes. His clients have included domestic and foreign hedge funds, private equity firms, major corporations, investment banks, prime brokers, lenders and individuals.Close
Brandon M. Hammer
Cleary Gottlieb Steen & Hamilton
Mr. Hammer’s practice focuses on financial institutions and transactions.| Read More
Mr. Hammer’s practice focuses on financial institutions and transactions.Close
Sean T. Scott
Mr. Scott represents institutional lenders, bank groups, hedge funds and other creditors in out-of-court workouts and... | Read More
Mr. Scott represents institutional lenders, bank groups, hedge funds and other creditors in out-of-court workouts and in-court bankruptcy proceedings. In the course of his practice, he also advises corporate clients on distressed asset sales and acquisitions and on structuring considerations in complex debt transactions.Close