The Bankruptcy Code enables corporate debtors to restructure their debts, including liability for tort damages. Recovery from an insolvent debtor poses daunting collective action problems for tort victims. By creating and funding a trust in bankruptcy, the liable company can streamline settlement and distribute available assets to give all claimants—including individuals who have been harmed by the company’s past activity but are not yet aware of the harm—an aliquot portion of available funds.
LINKS
Read “Defending ‘Second-Party’ Releases in Mass Tort Bankruptcies,” co-authored by Annette W. Jarvis, published in Volume 41 Issue 2 of the Emory Bankruptcy Developments Journal.
Click the media link below to download the PDF.