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ABI Journal

741

Seventh Circuit: Transfers of Nonpublic Securities Are Protected by the 546(e) Safe Harbor

The Seventh Circuit adopted a broad reading of the Section 546(e) safe harbor to dismiss a fraudulent transfer suit attacking a sale of nonpublic securities.

District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout

Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.