Third Party Releases in the United States International Insolvency Institute

In this episode of the ⁠International Insolvency Institute⁠’s Global Perspectives podcast, our expert panelist, Professor Anthony J. Casey (University of Chicago Law School) summarized the rules and case law regulating the treatment of third-party releases under U.S. Bankruptcy Law.
Professor Casey clarified what third-party releases are, as well as the distinction between consensual and non-consensual releases. He mentioned that the use of third-party non-debtor releases is quite common in large Chapter 11 cases. He summarized the key issues arising from the use of both consensual and non-consensual third-party releases and, finally, he discussed the importance of recent controversial Chapter 11 cases (Boy Scouts of America and Purdue Pharma). The podcast was recorded soon after the U.S. Supreme Court heard oral arguments in the Purdue Pharma case. As a result, Professor Casey outlined the potential implications of a judgment that may authorize, prohibit or limit the use of third-party releases under U.S. Bankruptcy Law.