Debt Dialogue: May 2017

This month's issue of Debt Dialogue addresses cases and issues of interest to investors, issuers, trustees and others, that run the gamut from structuring and issuance to bankruptcy and reorganization.

Topics covered in  this issue include:

• Supreme Court to Hear Circuit Split over Bankruptcy Safe Harbor Provision 
  
  Section 546(e) of the Bankruptcy Code provides that certain transfers "by or to" a financial institution are exempt from avoidance under the fraudulent transfer and preference provisions of the Bankruptcy Code. The circuits are split on whether this safe harbor applies to payments made through a financial institution whose only role is as an intermediary. For several decades, the majority position has been that it does. The Supreme Court will be deciding the issue next term, following a forceful opinion of the Seventh Circuit taking the minority position.