Skip to main content

Legal Update

In re Tribune: Defendants Successfully Challenge Individual Creditors Standing But District Court Rules that Section 546(e) Safe Harbor Does Not Bar Individual Creditors’ State Law Based Constructive Fraudulent Conveyance Claims

27 September 2013
Mayer Brown Legal Update
In In re Tribune, the US District Court for the Southern District of New York ruled that the right of individual creditors in a multidistrict litigation to assert claims for constructive fraudulent conveyance under state law was not preempted by the safe harbor provision of Section 546(e) of the Bankruptcy Code. While the Defendants ultimately prevailed, the Tribune court’s ruling on Section 546(e) of the Bankruptcy Code is troubling because it could provide a path for debtors and creditors to do an end run around the Bankruptcy Code’s safe harbors that exempt certain pre-bankruptcy financial transactions from avoidance as constructive fraudulent transfers.


  • Brian Trust
    T +1 212 506 2570
  • Monique J. Mulcare
    T +1 212 506 2181
The Build a Report feature requires the use of cookies to function properly. Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently. If you do not accept cookies, this function will not work. For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.