U.S. Court of Appeals for the Second Circuit
Bankruptcy — Avoidance
Securities Contract – Transfers
In re Quebecor World (USA) Inc.
Judges Chin, Lohier and Swain
Background: The appellant appealed from an order that dismissed its adversary complaint. The appellant sought to avoid and recover certain payments made to the appellees in exchange for private placement notes that had been issued by one of the debtor’s affiliates. Both lower courts held that the payments were exempt from avoidance under Section 546€ of the Bankruptcy Code.
Ruling: The Second Circuit affirmed. The Second Circuit held that the payments fell within the safe harbor provision for transfers made in connection with a securities contract.
John K. Sherwood of Lowenstein Sandler for the appellant