This chapter discusses the analysis conducted by the district court regarding third-party releases in bankruptcy. It focuses on the constitutional violation, lack of authority, and failure to meet the applicable test for the releases. The chapter also explores the issue of due process and consent, the lack of factual record, and the severability of the releases from the bankruptcy plan.
Featuring: Peloton, AMC, Mallinckrodt and Surprise Medical Billing legislation.
For this week’s Deep Dive, Reorg’s Mike Legge, Karen Leung and David Mayo join us to discuss the current state of play of third-party releases in bankruptcy, reviewing recent decisions in Purdue Pharma, Ascena Retail and Mallinckrodt, as well as reviewing the ongoing case of LTL Management and other “Texas two-step” bankruptcies.
If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial