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Delaware’s not so safe harbors: Third Circuit Bankruptcy Court declines to rule that a payment on a letter of credit is an avoidance-proof “settlement payment”

On March 26, 2012, Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware refused to rule that, as a matter of law, payments made to satisfy a debtor’s obligations under a letter of credit constitute “settlement payments” protected from avoidance under section 546(e) of the Bankruptcy Code. EPLG I, LLC v. Citibank, National Association et al. (In re Qimonda Richmond, LLC, et al.), No. 09-10589, 2012 Bankr. LEXIS 1264 (Bankr.

USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Cadwalader Wickersham & Taft LLP, Bond (finance), Letter of credit, Debtor, Credit rating, Citibank, United States bankruptcy court, Third Circuit
A guide to surviving the Kemper liquidation

In response to an imminent Order of Liquidation against the Kemper Insurance Companies, we have prepared the following “frequently asked questions” guide summarizing issues related to: (i) the financial regulation of insurance companies; (ii) the liquidation and proof of claim process in Illinois; (iii) potential recovery by policyholders of the amount of “covered” workers’ compensation claims from state guaranty associations; (iv) policyholder collateral; and (v) planning a response to the Kemper liquidation.1

I. FINANCIAL REGULATION OF INSURANCE COMPANIES

USA, Illinois, Insolvency & Restructuring, Insurance, Dentons, Confidentiality, Dividends, Financial regulation, Liquidation, US Department of State, Insurance commissioner