Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).
The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.
Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.
