July 22, 2009
Partner James S. Carr was quoted in The Deal Pipeline article, “Swapping Definitions.”
The article focused on the U.S. Court of Appeals for the Fourth Circuit’s ruling in the Chapter 11 bankruptcy case of National Gas Distributors, LLC. The article discussed the ruling’s impact on the definitions of commodity forward agreements,
swap agreements and the U.S. Bankruptcy Code’s safe harbor provisions. The article also discussed the decision’s impact on future bankruptcy cases.
“‘The important thing about the decision is that it tried to lend clarity to an area of the law that is evolving,’ says James S. Carr of Kelley Drye & Warren LLP, who feels that the 4th Circuit’s decision hews closer to Congress’s intent than the bankruptcy court did.
‘If the bankruptcy court applies the factors that the 4th Circuit outlined in its decision, it can only come to one conclusion,’ he adds.”
Mr. Carr also commented on the ruling’s benefits for “any bankruptcy estate that tries to avoid and recover potential fraudulent transfers and/or preferences.”