A Narrow Interpretation Of Section 546(e)

Law360, New York (April 1, 2013, 1:10 PM EDT) -- FCStone, a New York-based commodities brokerage firm, was recently ordered to return a transfer of $15.6 million to the bankruptcy estate of Sentinel Management Group. Approximately $1.1 million of this amount constituted a prepetition transfer of proceeds the debtor obtained from the sale of securities, which proceeds the debtor distributed to a certain segment of its customers, including FCStone.

Judge James B. Zagel of the United States District Court for the Northern District of Illinois in Grede v. FCStone LLC (N.D. Ill. 2013), determined that this...
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