Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.
The Third Circuit opinion by Thomas Ambro explained that the ‘close nexus’ test does not apply when a post-conformation dispute is ‘core’ or entails enforcing a court order.
A representative of future claimants must meet a higher standard than disinterestedness, the Third Circuit said, but technical conflicts may not be disqualifying.