Rochelle's Daily Wire

Manhattan district judge vacated confirmation of Purdue Pharma’s chapter 11 plan because the court had no statutory power to impose non-consensual releases of creditors’ direct claims against non-debtors.

Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’

Insurance coverage disputes are ‘routinely resolved in summary judgment,’ counseling against immediate withdrawal of the reference of a non-core lawsuit, district judge says.

Standing has three components: statutory standing, constitutional standing and prudential standing, Judge Thuma explains.

The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.

The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.

A voluntary chapter 11 case is neither a ‘suit’ nor a ‘claim’ against a debtor giving rise to an insurer’s duty to defend.

New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.