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Notice Requirement Clarified for Successor Liability Protection in Chapter 11 Asset Sale Orders

A bankruptcy court's asset sale order limiting specific pre-bankruptcy product liability claims required prior "actual or direct mail notice" to claimants when the debtor "knew or reasonably should have known about the claims," held the Second Circuit in July.

13 minute read October 14, 2016 at 10:03 AM
By
Michael L. Cook
Notice Requirement Clarified for Successor Liability Protection in Chapter 11 Asset Sale Orders

A bankruptcy court's asset sale order limiting specific pre-bankruptcy product liability claims required prior “actual or direct mail notice” to claimants when the debtor “knew or reasonably should have known about the claims,” held the U.S. Court of Appeals for the Second Circuit on July 13, 2016.

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