Rosa Evergreen highlights the complexities arising from the conflicting goals of these two areas of law. Environmental liabilities often prompt bankruptcy filings, with no specific bankruptcy code provisions addressing these issues. Debtors must comply with environmental laws, even during bankruptcy, with exceptions for government enforcement actions. The distinction between claims and injunctive relief is crucial, as claims can be discharged, while injunctions can enforce cleanup obligations. Options for debtors include selling contaminated property, entering settlements, or retaining the property, each with its own implications. The class emphasizes the need for adequate disclosures and the challenges of addressing both regulatory and monetary obligations.
Originally published by Restructuring Masterclass.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
