Delaware Bankruptcy Court Weighs in: Debtors Are Not Excluded From Bankruptcy Code's Definition of "Financial Participant" and Safe Harbor | Weil, Gotshal & Manges LLP
Introduction In a recent decision, the U.S. Bankruptcy Court for the District of Delaware (Shannon, J.) rejected an argument that the safe harbor provision of section 546(e) of the Bankruptcy Code is not available to debtors because section 101(22A)’s definition of “financial participant” excludes debtors. Instead, the court in Kravitz v. Samson Energy Co., LLC ( In re Samson Res. Corp.), No. 15-11934 (BLS), 2020 WL 7700693 (Bankr. D. Del. Dec. 23, 2020) held that the term “financial participant” does not exclude debtors. In reaching its conclusion, the court conducted an in-d...
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