Third-Party Releases Alive and Well in Chapter 15—Creative Maneuver or Comity?
Author: Douglas E. Spelfogel.; Derek Wright.; Karen Lou.
Source: Volume 41, Number 07, July 2025 , pp.81-84(4)
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Abstract:
Recent filings suggest that companies are using Chapter 15 recognition proceedings as a means to obtain relief not otherwise available under U.S. bankruptcy law. While U.S. bankruptcy courts appear to be aware of such maneuvers and the potential for abuse, recent decisions reflect a continued willingness to recognize foreign decisions as a matter of comity. As detailed herein, foreign entities should be aware of such a strategy but be wary of its limitations and potential scrutiny.Keywords: Enforceability of Nonconsensual Third-Party Releases; Harrington v. Purdue Pharma L.P.; In re Odebrecht; In re Crédito Real
Affiliations:
1: Jenner & Block LLP; 2: Jenner & Block LLP; 3: Jenner & Block LLP.