Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.
Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.
Augie/Restivo problems are avoided by including opt-out provisions in a substantive consolidation chapter 11 plan.
