Law360, New York (April 30, 2008, 12:00 AM EDT) -- With U.S. Circuit Courts split on the issue of whether bankruptcy courts have the power to release third parties from creditors’ claims without the creditors’ consent, a move known as nonconsensual third-party release, the Seventh Circuit recently weighed in the affirmative in In re Airadigm Communications, Inc.
With the split widening between the circuits on this matter, it seems more likely than ever that the Supreme Court could weigh in on and decide this critical issue to lenders and others.
Airadigm Communications, Inc. (Airadigm), a cellular-service...
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.