May 16, 2018 - This week the LSTA hosted the ninth installment of its quarterly roundup of Recent Developments in Bankruptcy Law. As usual, Rich Levin of Jenner & Block focused on a number of key recently-decided bankruptcy cases which raised issues that could impact loan market participants. In Merit Management v. FTI, the United States Supreme Court narrowed the scope of the financial contract safe harbor, ruling that the plain meaning of Section 546(e) of the Bankruptcy Code “dictates that the only relevant transfer for the purposes of the safe harbor is the transfer that the trustee seeks to avoid’ and not intervening transactions. In another Supreme Court decision, U.S. Bank v. Village at Lakeridge, the Court addressed the proper standard of review for determining who is an “insider”, concluding that the standard of review for a mixed question all depends on whether answering it entails primarily legal or factual work.” Mr. Levin then discussed In re Transwest, a 9th Circuit case that held that in multi-debtor cases, Section 1129(a)(10) requires one accepting class per plan, nor per debtor. Other cases addressed equitable mootness, cram down plans, proceeds of collateral, and other issues. The presentation slides, summary of cases and a replay of the entire webinar are available here.
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