In re: Quebecor World (USA), Inc., No. 12-4270 (2d Cir. 2013)Annotate this Case
Appellants sought to avoid and recover certain payments made by debtor, QWUSA, to appellees, noteholders, in exchange for private placement notes that had been issued by one of debtor's affiliates. On appeal, appellants challenged the district court's affirmance of the bankruptcy court's grant of appellees' motion for summary judgment. The bankruptcy court held that the payments were exempt from avoidance because they were both "settlement payments" and "transfers made... in connection with a securities contract," under 11 U.S.C. 546(e). The court affirmed the district court's judgment, concluding that the payments fell within the safe harbor for "transfers made... in connection with a securities contract."