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

A live 90-minute CLE webinar with interactive Q&A


Thursday, December 6, 2018

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926

This CLE webinar will discuss the current treatment of third-party releases in Chapter 11 reorganization plans. The panel discussion will include current approaches to incorporating release and discharge provisions into a Chapter 11 plan, and how creditors should evaluate and respond to such provisions based on recent case law.

Description

Third-party releases in plans of reorganization are often challenged when affected creditors have not expressly consented, and courts have recently scrutinized such releases more closely. Some courts have held that an affirmative showing of consent is required, while others have found that general release clauses can effectively bind parties who do not participate in the confirmation process. Counsel for debtors should consider steps to bolster the likelihood of approval of third-party releases as consensual.

Section 105(a) of the Bankruptcy Code gives the bankruptcy court the power to decide whether parties explicitly or implicitly consented to a release, weighing factors such as whether the provisions are fair, equitable and reasonable and are in the best interests of the debtor, its estate and parties in interest.

From the creditor’s perspective, Chapter 11 plans frequently include broad third-party release provisions that might be binding on creditors who take no action concerning a plan or fail to “opt out” of a release. Practitioners must develop a strategy for analyzing these releases on behalf of creditor clients, determining the scope and nature of any proposed releases and who is being released, and scrutinizing plan ballots regarding potential opt-out requirements. A timely objection must be filed if necessary.

Listen as our authoritative panel of bankruptcy practitioners discusses how to structure third-party release provisions in Chapter 11 plans, the standards that courts apply in approving releases, and the steps creditors’ counsel should take in reviewing and objecting or otherwise responding to such provisions.

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Outline

  1. Court standards for approving third-party releases
  2. Requirements for adequate disclosure of third-party releases
  3. Recent case law developments: explicit vs. implicit consent
  4. Structuring non-debtor releases
  5. Analyzing and objecting to non-debtor releases

Benefits

The panel will review these and other priority 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?
  • How should creditors, bondholders and other constituents evaluate release provisions to determine the appropriate response?

Faculty

Bank, Jason
Jason W. Bank

Member
Kerr Russell and Weber

Mr. Bank has over 20 years of experience in bankruptcy and restructuring and general corporate law. He focuses his...  |  Read More

Sasser, Philip
Philip Sasser

Atty
Sasser Law Firm

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

Additional faculty
to be announced.

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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