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Choppy Waters in the Safe Harbor for Shareholders of Failed LBOs?

In this latest round of bankruptcies following failed leveraged buyouts (LBOs), former shareholders must ask themselves whether the safe harbor of Section 546(e) of the Bankruptcy Code really is as calm as it appears ...

14 minute read February 27, 2012 at 09:47 AM
By
Kevin J. Walsh And Ella Shenhav
Choppy Waters in the Safe Harbor for Shareholders of Failed LBOs?

In this latest round of bankruptcies following failed leveraged buyouts (LBOs), former shareholders must ask themselves whether the safe harbor of Section 546(e) of the Bankruptcy Code really is as calm as it appears, or whether an approaching storm will ultimately require shareholders to pay back the money they received in the LBO.

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