In re Quebecor World (USA) Inc.: Second Circuit Broadly Applies Section 546(e) "Securities Contract" Safe Harbor | Practical Law
The US Court of Appeals for the Second Circuit in Official Committee of Unsecured Creditors of Quebecor World (USA) Inc. v. American United Life Insurance Co. (In re Quebecor World (USA) Inc.) affirmed a broad interpretation of the "securities contract" safe harbor found in section 546(e) of the Bankruptcy Code, ruling that a transfer made within 90 days of bankruptcy to purchase private placement notes issued by the debtor's affiliate was shielded from avoidance as a preference.