The Bottom Line

The Bottom Line

On February 27, 2018, the Supreme Court handed down a unanimous opinion, authored by Justice Sotomayor, resolving a Circuit split over the interpretation of Section 546(e) of the Bankruptcy Code, the “safe harbor” provision that shields specified types of payments “made by or to (or for the benefit of)” a financial institution from avoidance on fraudulent transfer grounds.

The Bottom Line

On April 7, 2016, Quicksilver Resources Inc. ("Quicksilver") announced that it closed the sale of its U.S. assets for $245 million to BlueStone Natural Resources II ("BlueStone") in connection with Quicksilver's bankruptcy cases and pursuant to an Asset Purchase Agreement that was approved by Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware in January 2016.

On Tuesday, March 8, 2016, U.S. Bankruptcy Judge Shelley C. Chapman in New York permitted Sabine Oil & Gas Corporation to reject three gas gathering and handling agreements with Nordheim Eagle Ford Gathering, LLC and HPIP Gonzales Holdings, LLC. All of the agreements are governed by Texas law.

Overview

On Monday, December 1, 2014, the U.S. House of Representatives unanimously passed the Financial Institution Bankruptcy Act of 2014 (“FIBA” or “the Act”). The Act, which garnered bipartisan support as well as the approval of financial regulators, seeks to facilitate the recapitalization of financial institutions by reforming the bankruptcy process, while maintaining financial stability in U.S. markets. The Act now must be approved by the Senate and then signed into law by the President.