On Monday, the U.S. Supreme Court heard oral argument in the Purdue Pharma bankruptcy appeal and, as a result, we might be approaching a mid-2024 “finish line” for an issue that some bankruptcy practitioners, professors, and judges are on the edge of their seats about: Do bankruptcy courts have
Two Christmases ago, we posted about Judge Colleen McMahon‘s (SDNY) 142-page opinion reversing the plan confirmation order in the Purdue Pharma Chapter 11 bankruptcy appeal on the basis that its non-consensual third-party releases were improper under the Bankruptcy Code. Today however, the Second Circuit entered a 97-page opinion (including a concurrence) reversing the District Court’s opinion and affirming the Bankruptcy Court’s approval of the Purdue Pharma plan (and its releases of the Sacklers).
I’ll summarize the high points in this post, with an option of coming back to it.Continue Reading Second Circuit Upholds Third-Party Releases for the Sacklers in Purdue Pharma Bankruptcy Appeal
Late yesterday, Judge Colleen McMahon (SDNY), in a 142-page (!) opinion, reversed the plan confirmation order in the Purdue Pharma Chapter 11 appeal on the basis that its non-consensual third-party releases are improper under the Bankruptcy Code.
As quick background, Purdue Pharma manufactures OxyContin. It sought Chapter 11 bankruptcy protection in September 2019 in response
Earlier this month, Judge Carey in Delaware weighed in on third-party releases in his opinion confirming the Chapter 11 bankruptcy plan for Abeinsa Holdings, Inc., et al. Back in February, we reviewed Judge Delano’s third-party release decision in HWA Properties, a Middle District of Florida case. In that case, the court refused to permit
The use of third-party releases in Chapter 11 has become more permissible in recent years, and, because it is such a potent tool, the exact contours and limits of these releases have been hotly debated. We first blogged about third-party releases last year in our series on the confirmation-related recommendations in the ABI Commission Report