Boston Generating: Trustee Loses Appeal Seeking to Claw Back $700M

Herrick's Restructuring & Finance Litigation co-chair, Sean E. O’Donnell, was featured in the Troubled Company Reporter which covered a recent ruling by the Second Circuit which affirmed the dismissal of all claims in In re: Boston Generating, LLC—a matter that has been litigated for over a decade involving fraudulent conveyance claims arising from a $2 billion leveraged recapitalization. In so doing, the Second Circuit ruled 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. Herrick represented the largest ad hoc group of defendants-appellees in this matter.

Read the full issue of Troubled Company Reporter here. The Herrick feature can be found on pages 21-23.