• Supreme Court to Consider Statutory Safe Harbor for Debtors' Pre-Petition Securities Transactions
  • November 3, 2017 | Author: Trevor W. Swett
  • Law Firm: Caplin & Drysdale, Chartered - Washington Office
  • Does the Bankruptcy Code bar a bankruptcy trustee from avoiding a debtor's constructively fraudulent pre-petition securities transactions merely because the deal was executed through a financial intermediary with no stake of its own in the transaction? The Supreme Court will address this question in Merit Management Group, LP v FTI Consulting, Inc.(1) The issue turns on the meaning of Section 546(e) of the Bankruptcy Code.