Emoral’s 363 Purchase Protection Comes With A Price
May 21, 2014, 6:59 PM EDT
Law360, New York (May 21, 2014, 6:59 PM EDT) -- In a novel decision, the United States Court of Appeals for the Third Circuit held, in its ruling In re Emoral Inc., 740 F.3d 875 (3d Cir. 2014), that personal injury claims of individuals allegedly harmed by a bankrupt debtor’s products cannot be asserted against a prepetition purchaser of the debtor’s assets, as they are “generalized claims” that belong to the debtor’s bankruptcy estate rather than to the individuals who suffered the harm.
In August 2010, Aaroma Holdings LLC acquired certain assets and liabilities of...