Purdue Pharma – If It Upholds Statutory Power, the Supreme Court Will Need to Address the Circuit Split on the Constitutional Authority of Bankruptcy Courts to Confirm Plans Containing Non-Consensual Third-Party Releases

Pratt’s Journal of Bankruptcy Law

The U.S. Court of Appeals for the Second Circuit’s recent decision in the Purdue Pharma case held that U.S. Bankruptcy Courts have statutory power to approve the non-consensual release of claims against non-debtor third parties contained in a plan of reorganization. The U.S. Supreme Court has agreed to hear an appeal. In this article in Pratt’s Journal of Bankruptcy Law, Kelley Drye’s Benjamin Feder discusses the issue on appeal and a related issue regarding the Constitutional authority of bankruptcy courts to confirm plans with non-consensual third-party releases.

Read the full article here.