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  • Writer's pictureKirk Hartley

Limiting Bankruptcy Court Exculpations Against Liability – Objections from a US Trustee to Req

Bankruptcy lawyers are seldom shy in asking for too much in chapter 11 plan confirmation orders. And,  too often, the lawyers and their clients obtain too much when objections are lacking due to the chummy world of mutual backscratching and other facets of bankruptcy deals. A result is that there are plenty of bankruptcy orders in the world that are unenforceable, if ever scrutinized. It is therefore good to see that at least some members of the U.S Trustees office are objecting to plan confirmation documents that ask for too much in the way of orders and injunctions regarding exculpations from liability. A June 27, 2014 example is here, from the MedLab case in Delaware.

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