Supreme Court Decision Shapes Innovative Settlement Strategy in Rockville Diocese Bankruptcy Case
NEW YORK — In a landmark decision, the Supreme Court ruled in the 2024 Purdue case that the Bankruptcy Code does not permit the use of Chapter 11 to force claimants to absolve non-debtors of responsibility in a bankruptcy process without the claimants’ consent. This ruling was pivotal in shaping how debtors coordinate with creditors and third parties to resolve claims collectively. Despite such limitations, many are finding a way around these constraints to ensure quicker, more equitable settlements, highlighting a significant trend in bankruptcy practices. The case of the Roman Catholic Diocese of Rockville … Read more