A recent decision out of the District Court for the Southern District of New York may bring greater certainty to the interpretation of what constitutes a “financial institution” in connection with the safe harbor in section 546(e) of the bankruptcy code. The decision, In re Tribune Fraudulent Conveyance Litig., 2019 U.S. Dist. Lexis 69081 (S.D.N.Y. Apr. 23, 2019), addresses whether transfers are protected from avoidance under the section 546(e) safe harbor when a “financial institution” merely acts as a conduit and is neither the debtor nor the real party in interest that ultimately received the payment as a result of the debtor or the recipient being the customer of the financial institution and may undercut the practical impact of the Merit Management case. To read more about this decision, as well as the implications it may have on section 546(e) fraudulent transfer litigation, check out this Dechert OnPoint by Dechert’s Business Restructuring and Reorganization group.