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Expert Analysis

Del. Case May Set New Roadblocks For 3rd-Party Releases

By Stephen Zide and Rachael Ringer (August 14, 2017, 11:43 AM EDT) -- Third-party releases have become a common and oft-litigated issue in connection with confirmation of a Chapter 11 plan. This is especially so if the party being released is the target of claims arising out of questionable prepetition transactions. And although rare and usually reserved for special circumstances, releases of third parties have been granted to a nondebtor on a nonconsensual basis if the contribution by the nondebtor party to the bankruptcy case is significant....

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