The Supreme Court was asked to resolve a split of circuits and decide whether the safe harbor provision of 11 U.S.C. Section 546(e) applies when a financial institution is only a “mere conduit.” The Supreme Court ruled unanimously in Merit Management Group LP v. FTI Consulting Inc. that the safe harbor under Section 546(e) applies only to “the transfer that the trustee seeks to avoid.” A transfer that is subject to recovery by a trustee as a constructively fraudulent transfe

In a 6-2 decision written by Justice Stephen Breyer, the U.S. Supreme Court ruled Wednesday, in Czyzewski et al v. Jevic Holding Corp. et al, that the use of so-called structured dismissals to end Chapter 11 cases must be narrowed, holding that a settlement that effectively wiped out employee claims against a trucking company but paid more junior creditors impermissibly sidestepped the U.S. Bankruptcy Code's creditor priority scheme. The Supreme Court’s decision reversed a Th