A recent decision out of a North Carolina bankruptcy court has reopened the question of whether a physical supply contract may qualify as a forward contract or swap agreement for purposes of the Bankruptcy Code. Although previous U.S. case law determined that those terms included commodity supply agreements, the U.S. Bankruptcy Court for the Eastern District of North Carolina disagreed.
USA, Insolvency & Restructuring, Litigation, Eversheds Sutherland (US) LLP, Bankruptcy, Debtor, Fraud, Natural gas, Swap (finance), Commodity, US Congress, International Swaps and Derivatives Association, Title 11 of the US Code, Trustee, United States bankruptcy court, Fifth Circuit