Bankruptcy Injunctions and Complex Litigation: A Critical Reappraisal of Non-Debtor Releases in Chapter 11 Reorganizations

123 Pages Posted: 16 Nov 2012

See all articles by Ralph Brubaker

Ralph Brubaker

University of Illinois College of Law

Date Written: November 15, 1997

Abstract

Bankruptcy courts are increasingly faced with resolving complex litigation in the context of Chapter 11 proceedings. Meanwhile, the judicial practice of discharging creditor actions against non-debtors in these proceedings is growing. This article asserts that such non-debtor releases are a wholly inappropriate use of bankruptcy courts’ injunctive powers.

This article begins with an overview of the nature and types of bankruptcy injunctions. It then carefully explores the various bankruptcy policy rationales that have been offered to justify non-debtor releases and critiques each in turn. The article then searches for a legitimate jurisdictional foundation for non-debtor releases and finds none. The conclusion of this article is that the use of non-debtor releases in bankruptcy lacks theoretical merit and is outside the scope of judicial authority without express legislative approval.

Keywords: non-debtor releases, bankruptcy injunctions, complex litigation, non-debtor stays, injunctions in aid of jurisdiction, necessary to reorganization

Suggested Citation

Brubaker, Ralph, Bankruptcy Injunctions and Complex Litigation: A Critical Reappraisal of Non-Debtor Releases in Chapter 11 Reorganizations (November 15, 1997). University of Illinois Law Review, p. 959, 1997, Illinois Public Law Research Paper No. 13-12, Illinois Program in Law, Behavior and Social Science Paper No. LBSS13-10, Available at SSRN: https://ssrn.com/abstract=2176436

Ralph Brubaker (Contact Author)

University of Illinois College of Law ( email )

504 E. Pennsylvania Avenue
Champaign, IL 61820
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
117
Abstract Views
719
rank
282,267
PlumX Metrics