Environmental Obligations in Bankruptcy: Reconciling the Conflicting Goals of Bankruptcy and Environmental Laws
Pre- vs. Post-Petition Claims, Enforcement Actions, Statutory Super Liens, Asset Sales, Abandonment and More
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will investigate the conflicts that exist between the Bankruptcy Code and state and federal environmental statutes and provide counsel with an understanding of how these issues are resolved in bankruptcy proceedings. The panel will review relevant court decisions and why some environmental claims receive special treatment in bankruptcy.
- Interplay of Bankruptcy Code and environmental statutes
- Treatment of environmental liabilities under Bankruptcy Code
- Filing and negotiating environmental liabilities in the bankruptcy process
- Environmental obligations and claims in bankruptcy
- When does a claim arise?
- Claim priorities and subordination (§510)?
- Exceptions to automatic stay for certain governmental agency actions
- Dischargeability of environmental obligations and claims under Chapter 11
- Discharge of cleanup obligations
- Owned vs. non-owned properties
- Discontinued operations
- Effect of superlien statutes
- Discharge of co-PRP claims against debtor
- Discharge of cleanup obligations
- Treatment of post-petition environmental cleanup as an administrative expense (28 U.S.C. §959(b).)
- Estimating and discharging addressing contingent environmental claims
- Sale and disposition of contaminated assets
- Sales pursuant to §§1141 and 363 of the Bankruptcy Code
- Abandonment under § 554
- Rejection of leases under § 365
- Use of custodial trusts
The panel will review these and other key issues:
- When are environmental claims dischargeable in bankruptcy and what are the limitations?
- What kinds of governmental actions are unaffected by the automatic stay?
- When are post-petition cleanup expenses treated as first priority administrative expenses?
- How are contingent environmental claims for contribution or cost recovery claims addressed in bankruptcy?
- Can the bankrupt debtor sell or abandon contaminated assets?
- How do governmental agencies with outstanding cleanup orders and environmental claims influence the outcome of the bankruptcy case?
- Due diligence considerations for sale of assets in bankruptcy proceedings
- Drafting and negotiating tips
Dawn M. Lamparello
Ms. Lamparello concentrates her practice in environmental law, including related litigation and regulatory compliance... | Read More
Ms. Lamparello concentrates her practice in environmental law, including related litigation and regulatory compliance work concerning various state and federal environmental statutes, including CERCLA and RCRA. Ms. Lamparello also advises clients on transactional matters, including environmental implications associated with corporate restructures and real estate transactions. She assists with serving as common counsel to over 50 companies participating in the Lower Passaic River Study Area Cooperating Parties Group, which is engaged with federal and state agencies in a CERCLA study of the Lower Passaic River in Northern New Jersey.Close
Mark W. Page
Massey & Gail
Mr. Page has over 25 years of experience in all aspects of bankruptcy cases and enforcement of creditors’ rights.... | Read More
Mr. Page has over 25 years of experience in all aspects of bankruptcy cases and enforcement of creditors’ rights. He uses his thorough understanding of the bankruptcy process to protect and prosecute the interests of virtually every type of bankruptcy and insolvency participant. Mr. Page has handled fraudulent transfer, Ponzi scheme clawback, lender liability, lien perfection and priority, and insolvency related lawsuits in federal and state courts. He has obtained favorable results for financial institutions, secured and unsecured creditors, co-“potentially responsible parties,” as well as related litigation.Close
Lawrence P. Schnapf
Mr. Schnapf primarily concentrates on environmental risks associated with corporate, real estate and Brownfield... | Read More
Mr. Schnapf primarily concentrates on environmental risks associated with corporate, real estate and Brownfield transactions. He counsels clients on environmental compliance, and represents clients in federal and state environmental litigation, enforcement actions, administrative proceedings and private cost recovery actions. Mr. Schnapf has also written numerous articles on environmental law, and is the general editor/contributing author of “Environmental Issues in Business Transactions” published by the Business Law Section of the ABA. He is Chair of the Environmental Law Section of the New York State Bar Association and Co-Chair of the NYSBA Brownfield Task Force.Close