Chapter 11 Plan Third-Party Release Provisions: Structuring or Objecting to NonDebtor Releases

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, December 16, 2014

Recorded event now available

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Program Materials

This CLE webinar will discuss structuring third-party releases and exculpation provisions in Chapter 11 plans of reorganization, the standards that courts apply in approving releases, crafting objections to nondebtor releases, and recent case law developments.

Description

Third-party releases in plans of reorganization are often contentious, with some disagreement among courts regarding whether they are permissible and when they are appropriate. The New York Bankruptcy Court recently ruled on a novel issue regarding nonconsensual releases, upholding the releases in In re Genco Shipping & Trading Ltd.

The recent Fourth Circuit ruling in In re National Heritage Foundation is instructive for debtors. Applying the test set out in In re Dow Corning Corp., the court held that releases in favor of the debtor, its officers and directors and the official committee of unsecured creditors were not valid because the debtor failed to demonstrate that the releases were justified.

The issue of adequate disclosure of nondebtor releases was addressed by the Third Circuit in In re Lower Bucks Hospital. The court excised the release of bondholder claims against the indentured trustee because they were not drafted in a clear and conspicuous manner.

Listen as our authoritative panel of bankruptcy practitioners discusses how to structure third-party releases and exculpation provisions in Chapter 11 plans, the standards that courts apply in approving releases, arguments for objecting to releases, and recent case law developments.

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Outline

  1. Court standards for approving nondebtor releases
  2. Requirements for adequate disclosure of nondebtor releases
  3. Recent case law developments
  4. Structuring nondebtor releases
  5. Objecting to nondebtor releases

Benefits

The panel will review these and other key issues:

  • What factors do courts consider in determining whether the third-party releases are appropriate?
  • How should third-party releases be drafted to avoid disclosure deficiencies?
  • What factors should creditors, bondholders and other constituents leverage in objecting to nondebtor releases?

Faculty

James M. Lawniczak
James M. Lawniczak

Partner
Calfee Halter & Griswold

Mr. Lawniczak has 30 years experience representing clients in complex corporate reorganizations and bankruptcy and...  |  Read More

Karen Skomorucha Owens
Karen Skomorucha Owens

Director
Ashby & Geddes

Ms. Owens represents corporate debtors, foreign representatives, creditors’ committees, examiners, and...  |  Read More

Philip Sasser
Philip Sasser

Atty.
Sasser Law Firm

Mr. Sasser's practice focuses on individual and business bankruptcy, insolvency matters, and associated...  |  Read More

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