Growing Split Among Circuit Courts About Exculpation Under Chapter 11

Admin on November 18, 2022 Posted in Bankruptcy Law, Blog

Countless Chapter 11 reorganization plans include provisions acknowledging the release of claims connected to stakeholders in bankruptcy cases. Excluded from this, however, are claims that allege various types of misconduct like bad faith, gross negligence, or fraud. These exculpatory statements are a valuable tool in motivating parties to play a role in bankruptcy cases without […]