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Second Circuit Picks a Side in Non-Consensual Third-Party Releases in Highly Anticipated Purdue Opinion

Introduction

Non-consensual third-party releases are provisions in reorganization plans that release non-debtor parties from liability to other non-debtor parties without the consent of all potential claimholders. These releases are frequently included in chapter 11 plans of reorganization. Most circuit courts allow these releases under certain circumstances; however, there is a split among circuit courts as to whether such non-consensual third-party releases are permitted by the Bankruptcy Code.

USA, Insolvency & Restructuring, Litigation, A&O Shearman, Bankruptcy, Second Circuit, US District Court for the Southern District of New York, U.S. Court of Appeals
Ninth Circuit Rules that the solvent debtor exception is alive and well in pg&e

Introduction

USA, Insolvency & Restructuring, Litigation, A&O Shearman, Ninth Circuit
Set-off and claims that may not be compromised by a CCAA plan of arrangement

In the matter of the Companies’ Creditors Arrangement Act (“CCAA”) of the S.M. Group, the Québec Court of Appeal rendered a ruling on the effect of the law of set-off on debts arising out of alleged fraud and the application of the same Court’s ruling in Kitco to this type of debts.

Canada, Insolvency & Restructuring, Litigation, McCarthy Tétrault LLP, Bankruptcy, Companies' Creditors Arrangement Act 1933 (Canada)