3rd Circ. Nixes BNY's Ch. 11 Release From Hospital Creditors

Law360, New York (July 03, 2014, 7:32 PM ET) -- The Third Circuit on Thursday upheld a bankruptcy court decision exposing Bank of New York Mellon Trust Co. NA to claims from aggrieved bondholders of a Philadelphia-area hospital, agreeing that the debtor’s reorganization failed to disclose that they would waive those claims by accepting an $8.2 million settlement.

A unanimous panel refused to hold the bondholder group to a provision in the disclosure statement of once-bankrupt Lower Bucks Hospital releasing claims that BNY mishandled their bonds as indenture trustee and cost them secured creditor status on...
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Case Information

Case Title

In Re: Lower Bucks Hospital


Case Number

13-1311

Court

Appellate - 3rd Circuit

Nature of Suit

3422 Bankruptcy Appeals Rule 28 USC 158

Date Filed

February 6, 2013

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