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'Conduit' Banks Can Trigger Ch. 11 Safe Harbor, 2nd Circ. Says

By Brian Mahoney (June 10, 2013, 5:25 PM EDT) -- The Second Circuit on Monday ruled that securities transfers may qualify for safe harbor from avoidance actions under the Bankruptcy Code even if the financial institution involved in the transfer is "merely a conduit," affirming the dismissal of $376 million suit brought by Quebecor World Inc. creditors against a group of insurer-investors....

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