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Third-Party Relationships Commercial Bankruptcy

Jones Day

Washington District Court Overturns Approval of Third-Party Releases in a Settlement Agreement and Related Free-and-Clear Sale

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For nearly 25 years, courts in the Ninth Circuit have consistently refused to sanction nonconsensual third-party releases as part of chapter 11 plans. A ruling recently handed down by the U.S. District Court for the District...more

Patterson Belknap Webb & Tyler LLP

Wagoner Rule, Episode 2: An Outsider Serving a Managerial Role Is an Insider

We previously discussed Bankruptcy Judge Martin Glenn’s analysis of the Wagoner Rule in the Feltman v. Kossoff & Kossoff LLP (In re TS Empl., Inc.) case. The bankruptcy trustee (the “Trustee”) had asserted a fraud claim...more

Kramer Levin Naftalis & Frankel LLP

Avanti Bankruptcy Court Enforces Nonconsensual Third-Party Releases in Chapter 15 Proceeding

Introduction Nonconsensual third-party releases in the Chapter 15 context may be gaining traction following a recent decision by Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York. ...more

Hogan Lovells

Third-Party Releases in Chapter 11 Plans

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U.S. Bankruptcy Judge Kevin Gross sitting in Delaware recently approved J.G. Wentworth’s (the “Debtor’s”) Chapter 11 plan after overruling an objection from the U.S. Trustee regarding third-party releases. The Debtor’s...more

Stinson LLP

Eighth Circuit Applies Subsequent New Value Defense To Payments Received From Third Party Creditor

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The Eighth Circuit held that preferential payments are subject to a new value defense of § 547(c)(4) where the new value was provided by a third party that benefitted from the preferential transfers....more

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