We have discussed plan releases in prior posts. Oftentimes, disputes involving
plan releases revolve around whether, and in what contexts,
third-party releases in plans are appropriate. Recently, the Third
Circuit Court of Appeals addressed the relatively unique question
of whether releases in a confirmed plan are binding upon
post-confirmation purchasers of the debtor's stock. The
Court's decision in Arctic Glacier Int'l, Inc. puts
buyers of a debtor's claims and shares on notice that they are
bound by the terms of the plan, including third-party release
provisions.
Factual Background
In Arctic Glacier, the debtors, including Arctic
Glacier Income Fund ("Arctic Glacier"), filed for
protection under Canada's Companies Creditors' Arrangement
Act. The debtors also filed for and received recognition under
Chapter 15 of the Bankruptcy Code. Under the debtors' plan of
arrangement (the "Plan"), Arctic Glacier was to liquidate
and distribute the proceeds to its
