Clifford Chance

Supreme Court Opines on the Scope of the Safe Harbor Provisions

9 March 2018

Merit Management Group, LP v. FTI Consulting, Inc.

In a decision entered last week, the Supreme Court determined to disregard intermediaries in connection with an "overarching transfer" between two parties that are not expressly protected by the Bankruptcy Code's Section 546(e) "safe harbor." The outcome was contrary to earlier decisions issued by the Second, Third, Sixth, Eighth and Tenth Circuits, which had found the safe harbor to be applicable where a protected entity was an intermediary.

 

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