- 11 U.S.C.
In re Adelphia Communs. Corp.
Mar
06
2007
Ruling
Settlement could provide for sale of estate interest in D&O policies but could not include channeling injunction and third party releases not critical to debtor's reorganization.
Procedural posture
In a chapter 11 bankruptcy case, the debtors moved, pursuant to 11 U.S.C. § 363, for approval of a settlement with insurers that issued their Directors and Officers ("D&O") policies under which the debtors would sell their interest in the policies to the insurers for $32.5 million. The settlement included a proposed channeling injunction prohibiting others from proceeding against the insurers to pursue claims under the policies.
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Court
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