Introduction
In a recent decision, the U.S. Bankruptcy Court for the District of Delaware (Shannon, J.) rejected an argument that the safe harbor provision of section 546(e) of the Bankruptcy Code is not available to debtors because section 101(22A)’s definition of “financial participant” excludes debtors. Instead, the court in
Kravitz v. Samson Energy Co., LLC (
In re Samson Res. Corp.), No. 15-11934 (BLS), 2020 WL 7700693 (Bankr. D. Del. Dec. 23, 2020) held that the term “financial participant” does not exclude debtors. In reaching its conclusion, the court conducted an in-depth textual analysis of the statute, ultimately settling on a “natural reading” and “plain text” interpretation. The court’s holding which is contrary to a decision by the U.S. District Court for the Southern District of New York may serve as useful precedent for debtors seeking to utilize the safe harbor provision of section 546(e) as an affirmative defense against avoidance acti