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Expert Analysis

Don't Sit On Bankruptcy Sidelines, 5th Circ. Ruling Reminds

By Gregory Hesse and Kaleb Bailey (February 20, 2024, 4:22 PM EST) -- In its recent decision in In re: Louisiana Pellets Inc. and German Pellets Louisiana LLC, the U.S. Court of Appeals for the Fifth Circuit held that a creditor could not assert its indemnification defenses in a suit brought by the trustee of a liquidation trust because the Chapter 11 plan's express language permanently enjoined the defenses, and the creditor chose not to participate in the debtor's bankruptcy despite having actual knowledge of it....

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