Law360, New York ( July 8, 2016, 11:07 AM EDT) -- In a decision handed down recently in In re Physiotherapy Holdings Inc.,[1] the U.S. Bankruptcy Court for the District of Delaware was asked to consider whether Section 546(e) of the Bankruptcy Code preempts certain fraudulent transfer avoidance actions brought under state law. While recent case law, most notably in the Second Circuit in the In re Tribune Co. multidistrict fraudulent transfer leveraged buyout litigation, has found that state law constructive fraudulent transfer claims involving these kinds of transactions are prohibited under Section 546(e)'s safe harbor, the court in Delaware held that the rationale for the safe harbor and the doctrine of preemption were not implicated under the facts before it and allowed the state law claims to proceed....