U.S. Court of Appeals for the Fifth Circuit Holds That Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability

Reprinted from: The Banking Law Journal | 06/09/2025

Cadwalader partners Douglas Mintz and Casey Servais and special counsel Thomas Curtin authored an article, “U.S. Court of Appeals for the Fifth Circuit Holds That Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability,” published in the June 2025 edition of The Banking Law Journal.

In the article, the authors analyze a recent Fifth Circuit decision holding that bankruptcy courts cannot use gatekeeping or injunction provisions in Chapter 11 plans to shield non-debtor entities from liability without affected claimants’ consent.

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