In re Sentinel Management: Seventh Circuit Provides Guidance on Inquiry Notice and Equitable Subordination | Practical Law
The US Court of Appeals for the Seventh Circuit in Grede v. Bank of New York Mellon Corp. (In re Sentinel Management Group, Inc.), held that suspicion of wrongdoing is sufficient to give a bank inquiry notice of that wrongdoing, barring the bank's defense of good faith in a fraudulent transfer claim. The Seventh Circuit also provided guidance on the standard required for equitable subordination of a non-insider creditor's claim.