3 ms·
The law surrounding Chapter 11 reorganisation plans only covers the relationships and responsibilities between debtors and creditors. It doesn't say anything ab
by michaelt 2y ago
The law surrounding Chapter 11 reorganisation plans only covers the relationships and responsibilities between debtors and creditors. It doesn't say anything about third parties.
But it does include a term saying a plan "may" also "include any other appropriate provision not inconsistent with the applicable provisions of this title" - subject to the approval of a judge.
Applying the broadest possible interpretation of this catch-all wording would produce absurd results - a bankruptcy plan would be more powerful than the constitution itself. So courts have to figure out just how broad an interpretation to apply.
- JumpCrisscross 2y ago> law surrounding Chapter 11 reorganisation plans only covers the relationships and responsibilities between debtors and creditors. It doesn't say anything about third parties Yes it does. It covers third-party releases—there is ample precedent for that. The Court held this isn’t a release, but a discharge. (Idk.)