Gambling Co. Blasts 7th Circ.'s Ch. 11 Safe Harbor Ruling

Law360, New York (July 21, 2017, 9:29 PM EDT) -- A former racetrack and casino shareholder has launched the opening salvo in a U.S. Supreme Court dispute over whether bankruptcy safe-harbor transfers to financial institutions include those where the institutions didn’t directly benefit, arguing that Congress intended to keep these transactions shielded from clawback.

In its opening brief submitted to the high court on July 13, petitioner Merit Management Group LP argued that the Seventh Circuit erred last year when it ruled that a Bankruptcy Code safe harbor provision forcing trustees to honor transfers to securities...
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