Debtor Against Debtor: Limits on the Discharge of Claims by One Bankruptcy Estate Against Another

Debtor Against Debtor: Limits on the Discharge of Claims by One Bankruptcy Estate Against Another

Client News

Related Solutions

WilmerHale has been at the forefront of complex financial restructuring and bankruptcy litigation and policy matters for decades.
A global team handling highly complex and sensitive matters in all aspects of litigation.
We help companies protect data, comply with evolving regulations, and respond to investigations and litigation.
As corporate bankruptcy filings increase, one debtor corporation is more likely to find that it has claims against another unaffiliated debtor corporation. The US Bankruptcy Code is generally not drafted with this situation in mind, and questions may arise regarding the effect of one debtor's bankruptcy on another's. Recently, the Southern District of New York Bankruptcy Court considered whether the avoidance actions pursued in the bankruptcy of OneStar under Sections 547 and 549 of the Bankruptcy Code could be maintained against WorldCom, which had confirmed in its own bankruptcy a Chapter 11 Plan of Reorganization discharging all claims against it under Section 1141 of the Bankruptcy Code. For more on the WorldCom-OneStar decision, see our recent Email Alert.

Notice

We appreciate your interest in WilmerHale. While we are pleased to have you contact us, please keep in mind that merely contacting WilmerHale does not create an attorney-client relationship. Such a relationship will not arise until the Firm agrees in writing to represent you in connection with a particular matter. Importantly, unless and until this has occurred, you should not provide us with any confidential information, and we have no duty to keep confidential any information that we may receive from you. Thank you for your understanding.

I Accept Cancel