A Possible Pathway Out Of The Stern V. Marshall Maze


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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