546(e) and 547(c)(6) Safe Harbors: Expand or Limit?
George Utlik, Counsel in Herrick's Restructuring & Finance Litigation Department was a speaker at the American Bankruptcy Institute's webinar titled "546(e) and 547(c)(6) Safe Harbors: Expand or Limit?"
The “safe harbor” under section 546(e) of the Bankruptcy Code protects from avoidance certain securities, commodities and financial transactions. Similarly, section 547(c)(6) protects the fixing of true statutory liens from preferential transfer avoidance. This year, the scope and application of the section 546(e) safe harbor has been reshaped by several courts, including the Second and Seventh Circuits. Panelists discussed recent case law affecting the effectiveness of section 546(e), helping shareholders and other parties in interest participating in an LBO to examine the issues and different results produced by the courts. Panelists also discussed how recent oil & gas bankruptcies have reignited an expansion of the section 547(c)(6) safe harbor.