Litigation Trust Claims: Confirmation and Investigation Pitfalls
Author: David M. Posner.; Kelly E. Moynihan.
Source: Volume 38, Number 05, May 2022 , pp.43-48(6)
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Abstract:
Post-confirmation liquidating trusts are a popular tool to allow claims to be pursued for the benefit of a debtor’s creditors. In this article, the authors discuss various pitfalls for such trusts, in particular: (1) preserving post-confirmation causes of action; (2) protection of privileges; (3) avoidance of standing issues; (4) preservation of rights under prepetition indentures; and (5) proper drafting of certain plan provisions.Keywords: 11 U.S.C. § 1123 (b)(3)(B) of the Bankruptcy Code; Post-Confirmation Trusts
Affiliations:
1: Kilpatrick Townsend & Stockton LLP; 2: Kilpatrick Townsend & Stockton LLP.