Adhering to the categorial prohibition of nondebtor third-party releases, the Fifth Circuit now allows a workaround to protect principal participants in chapter 11 cases.
The Fifth Circuit said in dicta that courts might apply the ‘functional approach’ rather than the Countryman test in deciding whether a triangular contract is executory.
The Tenth Circuit is the first appeals court to rule on remedy after the Supreme Court said that the 2018 increase in U.S. Trustee fees was unconstitutional.