The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.
On remand from the Supreme Court and the Second Circuit, the district court decides that the Mall of America landlord isn’t entitled to more than the bargain it made with Sears in 1991.
Absent ‘concerns peculiar to bankruptcy’ when there is an arbitration clause, the district court followed Henry Schein by saying that the bankruptcy court should have allowed arbitrators to decide which claims are arbitrable, or not.
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.