When a company saddled with potential environmental liabilities seeks bankruptcy protection, the goals of Chapter 11—giving the reorganized debtor a “fresh start” and fairly treating similarly situated creditors—can conflict with the goals of environmental laws, such as ensuring that the “polluter pays.” Courts have long struggled to reconcile this tension.
USA, New York, Environment & Climate Change, Insolvency & Restructuring, Litigation, Morrison & Foerster LLP, Contamination, Environmental remediation, Pollution, Bankruptcy, Debtor, Injunction, Government agency, Liability (financial accounting), US Environmental Protection Agency, Title 11 of the US Code, Second Circuit