HHR Bankruptcy Report

Category Archives: Seventh Circuit

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Recent Seventh Circuit Ruling Clarifies “Inquiry Notice” Doctrine

Posted in Bankruptcy Claims, Claims Subordination, Seventh Circuit
Bank of New York Mellon lost priority status for its claim of $312 million in the liquidation of Sentinel Management Group when the 7th Circuit held that it should have suspected Sentinel was misusing customer assets and conducted an investigation into the source of the collateral Sentinel had posted.  The 7th Circuit clarified the doctrine… Continue Reading

Supreme Court Hears Bankruptcy Court Jurisdiction Arguments In Wake of Stern v. Marshall

Posted in Chapter 7, SCOTUS, Seventh Circuit
Earlier this month the Supreme Court held oral argument on an appeal arising out of the Seventh Circuit Court of Appeals that revisits the thorny and frequently litigated issue of bankruptcy court jurisdiction post-Stern v. Marshall. In Wellness Int’l Network v. Sharif, the Seventh Circuit Court of Appeals held that (i) a bankruptcy court lacks… Continue Reading

Safe Harbor Provisions Intact in Recent Seventh Circuit Decision

Posted in Chapter 11, Safe Harbor Provisions, Seventh Circuit
Participants in the securities and futures markets rely on the Bankruptcy Code’s safe harbor provisions to protect their transactions and assets when a counter-party enters bankruptcy.  Reliance on the safe harbor provisions, whose objective is to increase the overall stability of the financial markets, was tested by a recent decision of the District Court for… Continue Reading