Kramer Levin’s Funds Talk provides legal commentary on the news and events that matter most to asset managers and funds.
Topics covered in this issue include:
The legal and regulatory framework that private fund managers must navigate is complex to say the least. With our new Private Funds Blog, we provide practical and digestible commentary on matters and developments that are topical and helpful to both in-house counsel and managers of private funds.
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A SPAC Primer
Nary a day goes by when we do not get an inquiry about SPACs. This primer provides you with an introduction to SPACs. Among other things, it explains what a SPAC is, lays out the economic terms of the equity offered in a SPAC IPO, introduces the players that inhabit the SPAC world, and describes the benefits of going public in combination with a SPAC instead of through a traditional IPO.
Ransomware threats and attacks dominated the cyber news cycle in 2020 and into 2021. With the COVID-19 pandemic and the uptick in remote work and learning, cybercriminals and nation-state hackers have seized on vulnerabilities in data security infrastructures to wreak havoc and to make money — in the form of cryptocurrency.
Bankruptcy Court Permits Chapter 7 Trustee to Utilize IRS’ Look-Back Period in Seeking to Avoid Fraudulent Transfers
In its recent decision in Mitchell v. Zagaroli, Adv. Pro. No. 20-05000, 2020 WL 6495156 (Bankr. W.D.N.C. Nov. 3, 2020), the Bankruptcy Court for the Western District of North Carolina held that the Chapter 7 trustee could step into the shoes of the IRS and utilize the IRS’ longer look-back period to avoid fraudulent transfers.
Delaware Bankruptcy Court Determines that Section 546(e) “Financial Participant” Does Not Exclude Debtors, Splitting From SDNY Decision
In a December 2020 decision, a Delaware Bankruptcy Court, in Kravitz v. Samson Energy Co. (In re Samson Res. Corp.), Nos. 15-11934 (BLS), 17-51524 (BLS), 2020 Bankr. LEXIS 3575, at *6 (Bankr. D. Del. Dec. 23, 2020), held that the term “financial participant” as used in the safe harbor provision of Section 546(e) of the Bankruptcy Code does not necessarily exclude debtors. The Delaware Bankruptcy Court’s holding split from a 2019 S.D.N.Y. decision.