Circuit Court Affirms Broad Reading of Safe Harbor

In a decision issued on June 10, 2013, In re Quebecor World (USA) Inc., No. 12-4270-bk, 2013 WL 2460726 (2d Cir. June 10, 2013), the Second Circuit affirmed decisions of the district and bankruptcy courts holding that section 546(e) of the Bankruptcy Code precluded a creditors committee from avoiding a debtor’s purchase of private placement notes issued by one of the debtor’s affiliates as a preferential transfer. https://clients.clearygottlieb.com/rs/alertmemos/65-2013.pdf