After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.
The Seventh Circuit adopted a broad reading of the Section 546(e) safe harbor to dismiss a fraudulent transfer suit attacking a sale of nonpublic securities.
By referring to the Rooker-Feldman doctrine, the appellant might have won an appeal where the bankruptcy court effectively set aside an erroneous decision by a state court regarding discharge.