IN RE: QUEBECOR WORLD (USA) INC., Debtor. OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF QUEBECOR WORLD (USA) INC., Appellant, v. AMERICAN UNITED LIFE INSURANCE COMPANY, AUSA LIFE INSURANCE COMPANY, BARCLAYS BANK PLC, DEUTSCHE BANK SECURITIES INC., LIFE INVESTORS INSURANCE COMPANY OF AMERICA, MIDLAND NATIONAL LIFE INSURANCE COMPANY ANNUITY, MODERN WOODMEN OF AMERICA, NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE/ANNUITY, NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE OF NEW YORK, PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY, THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, THE PAUL REVERE LIFE INSURANCE COMPANY, SYMETRA LIFE INSURANCE COMPANY, TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY, TRANSAMERICA LIFE INSURANCE COMPANY, WACHOVIA CAPITAL MARKETS, LLC, WILTON REASSURANCE LIFE COMPANY OF NEW YORK, JOHN DOES, 1-50, DEUTSCHE BANK AG, Appellees., 719 F.3d 94

Summary

The bankruptcy court held that the payments were exempt from avoidance because they were both settlement payments and transfers made in connection with a securities contract, within the meaning of 11 U.S.C.S. § 546(e). The court found that the payments clearly fell within the safe harbor for transfers made in connection with a securities contract because they were a transfer made by or to (or for the benefit of) a financial institution in connection with a securities contract because (1) the debtor transferred funds to the noteholders' trustee, in the amount and manner prescribed by the note purchase agreements (NPAs) for purchasing the notes; (2) the trustee was a financial institution; and (3) the NPAs were clearly securities contracts because they provided for both the original purchase and the repurchase of the notes, under 11 U.S.C.S. § 741(7). The debtor made the transfer to purchase the notes. A transfer may have been either for the benefit of a financial institution or to a ...