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Commercial Bankruptcy Set Off Bankruptcy Court

Mayer Brown

The Right of Set-off in Insolvency Proceedings

Mayer Brown on

The right to set off a claim is a legal concept through which reciprocal claims between a creditor and a debtor company are settled against each other reducing or extinguishing the smaller claim and leaving only a balance...more

Pillsbury Winthrop Shaw Pittman LLP

Third Circuit Confirms Triangular Setoffs Unenforceable in Bankruptcy

The Third Circuit’s recent decision in In re Orexigen Therapeutics Inc., 990 F.3d 748 (3d Cir. 2021) holds that section 553 of the Bankruptcy Code, which governs creditor setoffs, requires “strict bilateral mutuality.” As a...more

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