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Elaborating on its Resorts decision of ten years ago concerning payments to shareholders in a public leveraged buyout, the Court of Appeals for the Third Circuit recently ruled in In re Plassein Int’l, Corp. that the “settlement payment” exemption of section 546(e) of the Bankruptcy Code also insulates selling shareholders in a private LBO from fraudulent transfer liability
The United States Bankruptcy Court for the District of Delaware in Elway Company, LLP v. Miller (In re Elrod Holdings Corp.), 2008 WL 4414315 (Bankr. D. Del. Sept. 30, 2008) recently held that transfers in payment of a private stock sale to insiders constituted “settlement payments” under section 546(e) of the Bankruptcy Code and were therefore immune from avoidance as constructively fraudulent transfers by the chapter 7 trustee
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Workarea - Corporate Finance/M&A
Workarea - Litigation
Workarea - Insolvency & Restructuring
Firm Name - Paul, Weiss, Rifkind, Wharton & Garrison LLP
