In Law360: Intermediate Transfers May Be Safe From 546(e) Safe Harbor

November 13, 2017 — The article, "Intermediate Transfers May Be Safe From 546(e) Safe Harbor" by Meaghan Gragg was published in Law360.

Last week, the U.S. Supreme Court heard the oral argument in Merit Management Group v. FTI Consulting. The court is reviewing the Seventh Circuit’s decision holding that the safe harbor of Section 546(e) of the Bankruptcy Code does not protect from avoidance a transfer that is conducted through a financial institution (or other qualifying entity) where that entity is neither the debtor nor the transferee but acts merely as the conduit for the transfer. The Seventh Circuit’s decision splits from the Second, Third, Sixth, Eighth and Tenth Circuits, but is consistent with a two-decade-old decision of the Eleventh Circuit.

Click here to view full article.