In re Batavia Nursing Home: Section 546(e) Safe Harbor Covers Private LBOs Regardless of Size | Practical Law
The US Bankruptcy Court for the Western District of New York held in Cyganowski v. Lapides (In re Batavia Nursing Home, LLC) that the safe harbor provisions of section 546(e) of the Bankruptcy Code are not limited to publicly traded securities, but also apply to transactions involving privately held securities, such as leveraged buyouts (LBOs), regardless of size and impact on the financial markets.