Will third party waivers be returned? : Leave to Appeal Granted in Case of Delay – Insolvency/Bankruptcy/Restructuring
United States: Will third-party versions be licensed? : Leave to appeal granted in case of delay
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On May 7, 2021, we issued a legal alert regarding third-party communications as part of the plan of reorganization in the Perdue Pharma matter. [Purdue Pharma: Is Protection of Third Parties by
the Automatic Stay an Oxymoron?] The order confirming this plan was appealed and our subsequent legal alert dated December 21, 2021 discussed the decision of Judge Colleen McMahon of the United States District Court for the Southern District of New York which effectively blocked the part of the restructuring plan approved by the bankruptcy court. in September. [Purdue Pharma Restructuring Plan Effectively
Judge McMahon’s decision reversing the bankruptcy court’s order confirming Perdue’s reorganization plan is deemed “interlocutory.” Designation of an order as interlocutory means that the judge has concluded that a determinative question of law is in doubt and that the immediate resolution of this question is imperative for the progress of the case and is necessary to move the resolution forward. final of the action. Once deemed interlocutory, the Court of Appeal has the discretionary power to review the order and any decision it renders is final and without appeal.
In order to expedite the process, Judge McMahon issued an order on January 7 allowing an interlocutory appeal on condition that the appellants ask the Court of Appeals for the Second Circuit to expedite the appeal in the interest of resolving the business in a timely manner.
The implications of this case may be far-reaching in that it may set a precedent as to whether or not non-debtor third parties can be released from tort claims against them.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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