In re Boston Generating LLC, et al. – Adversary Defendants – Appellees
Representing the largest ad hoc group of defendants-appellees in fraudulent conveyance claims arising from a $2 billion leveraged recapitalization. The Second Circuit affirmed the dismissal of all claims, ruling that the Bankruptcy Code’s safe harbor provision for securities contracts payments, 11 U.S.C. § 546(e), applied to the leveraged buyout and pre-empted the plaintiff-appellant-trustee’s state-law fraudulent conveyance claims, which attempted to claw back approximately $708 million from the defendants-appellees. (S.D.N.Y. and Second Circuit 2012-2020)