Litigation Trustee News Today

Re: Docket No. 498, 671, 773 x ...

Parties structuring certain financial transactions to comply with the Bankruptcy Code safe harbor provisions, including protections from the avoidance powers in Section 548 of the...

We have previously blogged about the section 546(e) defense to a trustee’s avoidance powers under the Bankruptcy Code. A trustee has broad powers to set aside certain transfers made by ...

In the final written opinion of his illustrious career, Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York issued a decision in Halperin v. Morgan Stanley

For decades, authorities and experts have tried restricting excessive borrowing by private equity investors, since it’s been repeatedly shown that they leave lots of bankruptcies in their wake. And these abuses continue because private equity looting fee structures result in general partners making out handsomely whether or not the business does well. In 1987 (no typo), the Treasury proposed limiting the deduction of interest on highly leveraged transactions. That idea went by the wayside t...

To embed, copy and paste the code into your website or blog: A recent ruling from the United States District Court for the Southern District of New York sent shock waves through the legal and financial community, with some shouting that this “could be a gamestopper for the private equity business.” 1 Although the ruling in In re Nine West LBO Securities Litigation 2 breaks new ground and arguably narrows the protections available to directors under the normally-broad business judgment rule...

To embed, copy and paste the code into your website or blog: A great deal of buzz has been generated by the recent decision from the Southern District of New York in In re: Nine West LBO Securities Litigation, No. 20 MD 2941 (JSR) 2020 WL 7090277 (S.D.N.Y. Dec. 4, 2020), with some commentators questioning whether the decision places directors who approve a leveraged buyout at risk of liability for the actions of subsequent boards that occur long after they cease to be directors, or expands dir...