Plan Confirmation

How to Reorganize Mass Torts Without Third Party Releases

After the Supreme Court's reversal in Purdue, Debtors subject to mass tort liability will not be able to reorganize utilizing third party releases under a plan. Prior to Purdue, the Fifth, Ninth, and Tenth Circuits all prohibited third party releases but debtor subject to mass tort liability have nonetheless been able to reorganize. How did those debtors confirm their plans without third party releases? How will mass tort reorganization different after Purdue? Business Suggested Speakers John Lucas jlucas@pszjlaw.com Pachulski Stang Ziehl & Jones LLP

Section 1325(b)(1) Held Applicable to Post-Confirmation Amendments to Chapter 13 Plans

Courts are split on whether the confirmation requirements in Section 1325(b)(1) apply when a debtor seeks confirmation of an amended plan.

Nonconsensual, Nondebtor Releases Prohibited by a District Court in a Subchapter V Case

A district judge in New York reversed a bankruptcy judge who had permitted a nonconsensual, nondebtor release in a Subchapter V case.

Actual Notice Is Required for a Plan Injunction to Bind a Creditor

A creditor’s actual knowledge that a bankruptcy case exists isn’t enough for the creditor to be bound by a plan injunction, Delaware’s Judge Silverstein says.

Supreme Court Hears Argument on Who Has Standing in Bankruptcy Cases

The Supreme Court may decide that standing in bankruptcy cases is more flexible and that Article III standards don’t apply in chapter 11 cases.

Another Circuit Says Creditors Take Appreciation When a ‘13’ Case Converts to ‘7’

The Eighth Circuit aligned with the Ninth Circuit by holding that postpetition appreciation in a home belongs to creditors when a chapter 13 case converts to chapter 7.

Late-Allowed Vehicle Claims: Striving for a More Just Result

June 2024

Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction

Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.