Judge Nixes Releases In Chem Rx Ch. 11 Plan

Law360, New York (April 7, 2011, 8:03 PM EDT) -- A Delaware bankruptcy judge ruled Thursday that Chem Rx Corp. must remove releases granted to members of its unsecured creditors committee in its Chapter 11 liquidation plan before it can begin paying off creditors.

Judge Mary F. Walrath refused to confirm the plan at a hearing in the U.S. Bankruptcy Court for the District of Delaware, saying the committee members provided no meaningful consideration in the global settlement at the heart of the plan to warrant being protected from lawsuits.

The global settlement resolves a host...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.