Home      Login

Abstract: 

Third-party releases in bankruptcy proceedings have existed for over 40 years with very little guidance from Congress or the Supreme Court regarding the permissibility of those releases. That changed with the Supreme Court’s recent decision in Purdue, where the Supreme Court ruled that non-consensual releases of non-debtors by other non-debtors are not permissible. That decision, however, left open a bevy of unresolved issues, many of which may need to be resolved by the Supreme Court in future decisions absent Congressional action in the interim. This article addresses many of those open issues and how lower courts have already begun to address them following the Supreme Court’s decision.

Keywords: Consensual Third-Party Releases; Full Satisfaction Releases; Substantially Consummated Plans

Affiliations:  1: Potter Anderson & Corroon LLP.