Second Circuit Upholds Protection Of The Section 546(e) Bankruptcy Safe Harbor For Payments Made By A Debtor To Redeem Its Commercial Paper

On June 28, 2011, the Court of Appeals for the Second Circuit upheld the Southern District of New York's determination that the safe harbor provision in § 546(e) of the Bankruptcy Code protects from the bankruptcy trustee’s powers to avoid transfers made by the Debtor, Enron Corp., to redeem commercial paper prior to maturity.