In his latest article for The Bankruptcy Strategist titled, “Seventh Circuit Applies Safe Harbor to Private Securities Transaction,” Schulte Roth & Zabel of counsel Michael L. Cook discusses the Seventh Circuit’s decision in Petr v. BMO Harris Bank, N.A.

“… [T]he term ‘securities contract’ as used in [Bankruptcy Code] §546(e) unambiguously includes contracts involving privately held securities.” Petr v. BMO Harris Bank, N.A., (In re BWGS, LLC), 2024 WL 113217, *6 (7th Cir. Mar. 15, 2024). Affirming the district court’s reversal of the bankruptcy court, the court also held that “§546(e) preempts” the bankruptcy trustee’s “proffered” state law fraudulent transfer claims. Id. at *10.

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Schulte Roth & Zabel co-managing partners David Efron and Marc Elovitz recently spoke with The American Lawyer, reflecting on the firm’s achievements in 2023 and outlining their vision for 2024. As a result of doubling down on private capital work and litigation matters, Schulte turned in 7.1% revenue growth to hit an all-time firm high of $545.43 million. The firm’s net income also rose to $260.5 million, accompanied by a 0.3% rise in revenue per lawyer to $1.49 million.

Significant investments in talent acquisition characterized Schulte’s proactive approach in 2023, culminating in a 6.7% expansion in overall headcount. The partnership expanded 13% to 78 partners while the recruitment of several C-suite professionals underscored the firm’s commitment to strategic advancement. “We are thrilled with the people we have brought in via lateral hires, promotions and those that are going to help us with strategy (business professionals). Generally, we are really happy with the year,” David said.

As many law firms take advantage of opportunities from the rise of private capital, Schulte remains entrenched in the field, a stance that fortifies our litigation practice. “We look at the world and our place in it, compared to other firms that are our peers, a little differently,” said Marc. “We are focused on private capital. We are not going around the world opening offices or following trends. We are deeply embedded in private capital. As that has bloomed and become a larger part of the overall economy, that is where we see our future. And we are in a leadership position.”

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