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Bankruptcy Code Non-Debtors Reorganizations

Rivkin Radler LLP

Supreme Court Rejects Purdue Pharma’s Bankruptcy Plan

Rivkin Radler LLP on

On June 27, 2024, the U.S. Supreme Court blocked a $6 billion bankruptcy settlement in Harrington v. Purdue Pharma L. P., No. 23-124, 2024 WL 3187799, at *11 (U.S. June 27, 2024). The Court found that the Bankruptcy Code does...more

Vinson & Elkins LLP

SCOTUS in Purdue: Non-Debtor Third-Party Releases Are Not Permitted in Chapter 11 Plans Without Consent

Vinson & Elkins LLP on

On June 27, 2024, the United States Supreme Court (the “Supreme Court” or “Court”) rendered a 5-4 opinion in Harrington v. Purdue Pharma, L.P. that “the [B]ankruptcy [C]ode does not authorize a release and injunction that, as...more

Hicks Johnson

Sackler Family’s Fate in the Supreme Court Is Poised to Transform Texas Bankruptcy Law

Hicks Johnson on

On December 4, 2023, the Supreme Court will hear oral argument in a case that may have major implications for bankruptcy law in the Fifth Circuit. While the Fifth Circuit (along with the Ninth and Tenth Circuits) has held...more

Hogan Lovells

House Judiciary Committee to Markup Nondebtor Release Prohibition Act of 2021

Hogan Lovells on

On Wednesday, November 3, the House Judiciary Committee approved legislation on a party-line vote that could drastically reshape chapter 11 restructurings, particularly in cases involving significant tort liability. The bill,...more

Morgan Lewis

Proposed Legislation May Limit Chapter 11 Plan Releases

Morgan Lewis on

Chapter 11 plans of reorganization provide creditors with recoveries (cash or new securities) in exchange for a release and discharge of all claims against the debtor. Many Chapter 11 plans go a step further to release claims...more

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