In re Purdue Pharma
In In re Purdue Pharma, ___ F.Supp.4th___ (US District Court, Southern District of New York 12/16/21 decision, in appeal LC 21-07532 from Bankruptcy court to District Court, the US District Court Judge overturned the Order confirming debtor Purdue Pharma’s Chapter 11 Plan, because of the releases plan gave nondebtors (Sackler family). the US District Court ruled that the Bankruptcy court had no statutory power to impose non-consensual releases–by creditors which had NOT voted to accept the plan– of creditors’ direct claims against non-debtors for opioid damages. Sacklers paying 4.35 billion dollars into plan did NOT fix that fatal problem.
Moral of this story: If you want a discharge, file your own bankruptcy case, where you are the bankruptcy debtor, and seek a discharge in your own bankruptcy case of claims against you. If you receive a discharge in your own bankruptcy case, that will have the same effect as RELEASES would have, that Sacklers try to get in Purdue Pharma’s bankruptcy case.