Bankruptcy Litigation Update

May 18, 2017

Otterbourg partner and head of its bankruptcy practice, Hon. Melanie L. Cyganowski (ret.), will be participating in a panel on bankruptcy litigation on May 18, 2017 at the American Bankruptcy institute's Annual Conference at the New York Hilton Midtown in New York City.

The panel will present a fraudulent transfer update and discussion on:

  • the split over § 546(e) safe harbors (Physiotherapy, Tribune, Madoff, Meritt Management), 
  • 10-year reach-back periods (Kipnis),
  • the reinstatement of unsecured creditors’ intentional fraudulent conveyance claims and the ruling that the intent of the CEO can be imputed to the company (Lyondell),
  • the finding that substantive consolidation does not augment the trustee’s § 544(b) avoiding powers by allowing the trustee to rely on predicate creditors from another estate (Petters), and
  • the ruling that access to a credit line rebuts unreasonably small capital claims (SemCrude).

The session will also feature an update on the Trust Indenture Act, including discussion of the recent Second Circuit decision in Chesapeake Energy and its implications regarding the finality of bankruptcy court orders, and an update on the litigation of feasibility issues (Paragon).

The panel will be moderated by Philip Bentley, Kramer Levin Naftalis & Frankel LLP, and Judge Cyganowski (ret.), will be joined on the panel by Mark P. Kronfeld, Tennenbaum Capital Partners, LLC and Chief Judge Carla E. Craig (EDNY).