Bill > S2497

This bill, the Nondebtor Release Prohibition Act of 2021, amends the United States Bankruptcy Code to prohibit non-consensual releases of a nondebtor entity's liability to an entity other than the debtor. It establishes that a bankruptcy court cannot approve or order the discharge, release, termination, or modification of the liability of an entity other than the debtor or the bankruptcy estate. The bill also provides exceptions to this prohibition and allows for the appeal of certain nondebtor stays. Additionally, it requires the dismissal of a bankruptcy case if the debtor was formed through a divisional merger or equivalent transaction that separated material assets from liabilities in the 10 years prior to the bankruptcy filing.

Justice

https://www.congress.gov/bill/117th-congress/senate-bill/2497/all-info