Stroock Special Bulletin
"In re National Gas Distributors, LLC: Fourth Circuit Weighs in on Scope of Safe Harbor Provisions"
In its recent decision in Hutson v. E.I. duPont de Nemours & Co. (In re National Gas Distributors, LLC), No. 07-2105, 2009 WL 325436 (4th Cir. February 11, 2009), the United States Court of Appeals for the Fourth Circuit provided importance guidance on the scope of the forward contract and swap agreement definitions in the Bankruptcy Code. Although the Circuit remanded the case for further proceedings, the Court rejected the rationale relied upon by the Bankruptcy Court to deny a counterparty “safe harbor” status under the Bankruptcy Code.