Dust Off Your Magic Eight Ball – The Future of Nonconsensual Third-Party Releases in Light Of In Re: Purdue Pharma LP
By Steven R. Kinsella and Emily M. McAdam
Can a debtor include releases of non-debtor third parties in its chapter 11 plan? This divisive issue has been litigated before a number of different courts throughout the country. The Southern District of New York recently weighed in and reversed the confirmation of a plan containing third party releases. How does this recent decision impact the continued debate over third-party releases?