Reassessing the Impact of Merit Management
Gordon Z. Novod and Frank Griffin - Decemeber 2024
In a recent decision, S.D.N.Y. Bankruptcy Judge Michael E. Wiles reexamined the breadth and scope of the Section 546(e) safe harbor provision in light of the Supreme Court’s 2018 decision in Merit Management, LP v. FTI Consulting, Inc. Judge Wiles’ decision limits the applicability of the Section 546(e) safe harbor by refusing to collapse a series of transfers based on the economic substance of the overarching transaction instead focusing on the transfer that the plaintiff trustee seeks to avoid.