11th Circ. Just Got More Attractive For Business Bankruptcy
By Paul Steven Singerman, Isaac Marcushamer, Paul Avron and Ilyse Homer ( October 24, 2017, 12:44 PM EDT) -- After the decision of whether to file a corporate Chapter 11 bankruptcy case is made, the next most important decision is where to file the case. Most companies have multiple venue options, and proper prefiling planning often includes a consideration of the law in the various venue options in respect of issues that may be material to the success of the case. In cases where the resolution of asserted or contemplated litigation claims is material to the objectives of the prospective debtor or other stakeholders, including private equity sponsors or litigation targets that may be funding sources for the resolution of the case, the parties often pay close attention to the prospects of the bankruptcy court entering a permanent injunction or "bar order" or nonconsensual third-party release.[1] This article will help explain why the Eleventh Circuit's recent opinion in In re: Fundamental Long Term Care, No. 16-16462, 2017 WL 46826791 (11th Cir. Oct. 19, 2017), offers the clearest statement of the law of any circuit court to date upholding the power of bankruptcy courts to issue bar orders....
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