News & Analysis as of

Non-Debtors Debtors Appeals

Cadwalader, Wickersham & Taft LLP

Fifth Circuit Holds that Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability

On March 18, 2025, the United States Court of Appeals for the Fifth Circuit held in In re Highland Capital Mgmt., L.P., that a plan’s gatekeeping and injunction provisions could not extend to claims against most non-debtors...more

Ward and Smith, P.A.

Should I Care About the Purdue Pharma Decision?

Ward and Smith, P.A. on

On June 27, 2024, the United States Supreme Court decided the Purdue Pharma appeal. In a five-to-four decision, the Supreme Court held that a bankruptcy court may not extend to non-debtors the benefits of a Chapter 11...more

Pillsbury Winthrop Shaw Pittman LLP

When Does an Alter Ego Suit Alleging Debtor and Non-Debtor Are “One and the Same” Violate the Discharge Injunction?

The Ninth Circuit Bankruptcy Appellate Panel holds that a discharge injunction does not bar an alter ego claim against a non-debtor where, under applicable law, the result of an alter ego finding is not to deem the entities...more

Seward & Kissel LLP

Bestwall Bossa Nova, Core Strategy, Auction Over(stock), and Vice Price

Seward & Kissel LLP on

Georgia-Pacific may maintain bankruptcy pause on lawsuits, court rules | Reuters - The 4th U.S. Circuit Court of Appeals recently ruled to extend Georgia-Pacific’s protection against lawsuits while its subsidiary...more

White and Williams LLP

Second Circuit Finds Willful Stay Violation in Foreclosure Sale of Non-Debtor’s Real Property

White and Williams LLP on

On July 6, 2022, the Court of Appeals for the Second Circuit (the Circuit Court), in analyzing an issue of first impression, entered a decision clarifying the expansive applicability of the automatic stay provision of the...more

Ballard Spahr LLP

NY Court of Appeals Holds No Bankruptcy Preemption of Lender Tort Claims Against Related Third Parties

Ballard Spahr LLP on

Summary - The State of New York Court of Appeals held that claims against non-debtor related parties, based on their actions to aid or induce Chapter 11 debtors to breach contractual loan covenants, were not subject to...more

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