Special counsel Ben Feder
authored the Law360
article “A Possible Pathway Out of the Stern V. Marshall Maze.” The article discusses the pending judgement in the PEM Entities LLC v. Levin case, where they will decide whether federal or a state law should apply when a debt claim held by a debtor’s insider is sought to be recharacterized in bankruptcy as a capital contribution and treated as equity. The case raises important questions about the extent to which the commencement of a proceeding under the U.S. Bankruptcy Code can and should affect parties’ rights and interests as they exist under nonbankruptcy law.
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