Law360, New York ( May 12, 2016, 12:56 PM EDT) -- Do constructive fraudulent transfer claims that were not pursued by a trustee in a bankruptcy proceeding revert to creditors? In In re Tribune Co. Fraudulent Conveyance Litig.,[1] the Second Circuit answered in the negative. The Second Circuit ultimately reached its conclusion by relying on preemption under 11 U.S.C. § 546(e), but only following a lengthy discussion of the resulting "ambiguities, anomalies, and conflicts" if the answer was yes. While this discussion does not have precedential value — the court notes several times that it need not resolve the question — it provides a persuasive argument that the answer of whether fraudulent conveyance claims revert to individual creditors would still likely be "no" even were Section 546(e) not to apply....
Law360 is on it, so you are, too.
A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.
