May 11, 2017 - This week the LSTA hosted the fifth installment of our quarterly roundup of Recent Developments in Bankruptcy Law. Rich Levin of Jenner & Block once again focused on a number of recent key cases for loan market participants. The most important issue covered was the recent Supreme Court decision in In re Jevic where the Court ruled that non-consensual structured dismissals that distributed an estate’s property in violation of the absolute priority rule are prohibited. Mr. Levin pointed out that the ruling was narrow and continued to permit other structured settlements as well as interim distributions that were not in accordance with the absolute priority rule. Other issues covered included whether a buyer with notice of an adverse claim can be a bona fide purchaser (the bankruptcy court in Wisconsin said no); and whether a bankruptcy court has “related to” jurisdiction over a fraudulent transfer defendant’s cross-claims (the bankruptcy court in New York, in another action in the Madoff bankruptcy said no). The presentation is available here.
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