Wyle v. Howard, Weil, Labouisse, Friedrichs Inc. (In re Taft)

OPINION

THOMAS E. CARLSON, Chief Judge.

The principal question in this ease is whether section 546(e) of the Bankruptcy Code bars a trustee from recovering as a fraudulent conveyance transfers made by a stockbroker pursuant to a reverse repurchase agreement used to facilitate a leveraged buy out. I conclude that there are no genuine issues of material fact and that section 546(e) bars trustee’s action, and therefore grant summary judgment for defendant.

FACTS

The material facts are not in dispute. On December 30, 1987, MaxPharma, Inc. paid Connecticut General Corporation (CIGNA) $500,0Q0 for an…