Debt Dialogue: July 2017

This month's issue of Debt Dialogue addresses recent developments and recurring issues that debt-focused investors commonly encounter in connection with enforcement of rights, interpretation of documentation and other relevant matters.

Topics covered in this issue include:

• A New Millennium: Bankruptcy Courts May Lack Constitutional Authority to Approve Nonconsensual Plan Releases
  While nonconsensual third party releases are inherently difficult to obtain as part of a confirmation order, a recent decision by the Delaware district court in Millennium Lab Holdings sets another roadblock to the bankruptcy court's authority to approve nonconsensual third-party releases. The district court, relying on the Supreme Court's decision in Stern v. Marshall, found that even where a bankruptcy court has jurisdiction to approve plan-based third-party releases, it may lack constitutional authority to approve those releases on a nonconsensual basis. The remand of the