Rockville

Supreme Court Decision Shapes New Bankruptcy Strategy for Roman Catholic Diocese of Rockville Centre

by

NEW YORK — In a landmark ruling that has reverberated through the legal community, the Supreme Court in 2024 clarified that the Bankruptcy Code does not permit the enforcement of a Chapter 11 plan to absolve non-debtors of claims without the explicit consent of claimants involved. This decision has significant implications for bankruptcy cases and the way claims are handled against third parties who are not directly filing for bankruptcy but are nonetheless implicated through their connection to the debtor. This ruling was a critical element in the resolution of a high-profile Chapter 11 bankruptcy … Read more

Supreme Court Decision Shapes Innovative Settlement Strategy in Rockville Diocese Bankruptcy Case

by

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