Nonconsensual Third-Party Releases Permitted in Bankruptcy Sale Under Debtor-Insurer Settlement

Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina co-authored an article for The Legal Intelligencer titled, “Nonconsensual Third-Party Releases Permitted in Bankruptcy Sale Under Debtor-Insurer Settlement.”

The authors discussed the Harrington v. Purdue Pharma Supreme Court decision, where a divided Court held that Chapter 11 plans of reorganization could not impose releases of claims against third-party nondebtors without the consent of affected claim holders. The authors said courts and bankruptcy attorneys are now attempting to determine the breadth of the Purdue ruling and whether it should apply to other provisions in Bankruptcy Code.

“Until these cases make their way through the courts, including the appellate system, bankruptcy practitioners will craft creative ways to interpret Purdue, and the law will continue to evolve,” the authors noted.

The full article is available to The Legal Intelligencer subscribers.