Trustee of Madoff Investment Securities LLC denied extraterritorial recovery
Bernard L. Madoff Investment Securities LLC,1 the United States District Court for the Southern District of New York (Judge Jed S. Rakoff), in granting a motion to dismiss, held that section 550(a)(2) of the Bankruptcy Code, which allows a trustee to …
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District court blocks bankruptcy trustee's foreign entanglement
The court also rejected the trustee's argument that the U.S. debtor here had fraudulently transferred assets “offshore and then [arranged for the] retransfer [of] those assets to avoid the reach of U.S. bankruptcy law.” Id. Because “the Trustee here …
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House Bill Proposes Puerto Rico Bankruptcy; S&P Downgrades PREPA Utility
“I believe that amending the U.S. Bankruptcy Code to extend Chapter 9 to Puerto Rico is the most sensible and logical way to proceed,” wrote Pedro Pierluisi, Puerto Rico's resident commissioner. “My legislation would simply enable the Puerto Rico …
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