June 20, 2017 - The article, "A Preference Pendulum: Extraterritorial Application of Avoidance Powers in the SDNY" by Chris Kiplok and Dustin Smith was published in New York Law Journal.
The Bankruptcy Court for Southern District of New York is among the world’s leading forums for court-supervised restructuring. As such, it routinely confronts complex flows of funds among affiliates and counter parties across the globe. Among other legal challenges, the extraterritorial application of avoidance provisions of the Bankruptcy Code takes on increased prominence in the district. This question is of particular importance in financial firm wind-downs, shipping restructurings, and other global insolvencies where fiduciaries review such essential functions as payments to vendors, pay-downs of credit facilities, distributions to shareholders, investments redemptions, and professional fees.