We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Reinterpreting Section 553's Mutuality Requirement

Law360 (January 16, 2009, 12:00 AM EST) -- The decision in In re SemCrude LP, et al., prohibiting parties from contracting around Bankruptcy Code section 553’s mutuality requirement may disrupt customary business practices, including those widely used in the energy, natural gas and crude oil markets, because it rules that contracting for cross affiliate netting does not “create” the mutuality required for setoff.

On Jan. 9, 2009, the U.S. Bankruptcy Court for the District of Delaware (Judge Brendon L. Shannon presiding) in the In re SemCrude LP, et al. (debtors) bankruptcy cases held that,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.