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Bankruptcy – Chapter 11 Plan – Vacated – Nondebtor Release (access required)

Behrmann v. National Heritage Foundation Although debtor foundation says this appeal is equitably moot as debtor has consummated its confirmed reorganization plan by distributing $20 million in estate assets, the 4th Circuit vacates the lower court order confirming the Chapter 11 plan that approved nondebtor release, injunction and exculpation provisions and remands the case for further proceedings. We consider in this case the circumstances under which a bankruptcy court may approve nondebtor release, injunction and exculpation provisions as part of a final plan of reorganization under Chapter 11 of the Bankruptcy Code.
By North Carolina Lawyers Weekly Staff 
Published: December 15, 2011
Time posted: 1:45 pm
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