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A 3rd Circ. Opinion On Third-Party Releases

Law360, New York (August 11, 2014, 10:24 AM EDT) -- In an opinion filed on July 3, 2014, in the case of In re Lower Bucks Hospital et al., Case No. 10-10239 (ELF), the United States Court of Appeals for the Third Circuit affirmed a decision of the United States Bankruptcy Court for the Eastern District of Pennsylvania, which denied approval of third-party releases benefiting the Bank of New York Mellon Trust Co. NA in its capacity as indenture trustee (BNYM, or the trustee). The Third Circuit agreed with the bankruptcy court’s finding that the proposed releases were not adequately disclosed to the bondholders as required by Bankruptcy Rule 3016(c), and...

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