Restructuring Across Borders: Impact of Purdue - third party releases around the world

The A&O Shearman Restructuring Across Borders Toolkit has been developed by our market-leading restructuring group (where applicable, in conjunction with our partner law firms) offering a free and easy-to-use resource that provides information and guidance on key practical aspects of restructuring and insolvency proceedings in more than 50 jurisdictions around the world.

In the latest edition of the Restructuring Across Borders podcast series, A&O Shearman attorneys from the U.S., U.K., Netherlands and Hong Kong examine the state of third party releases in restructurings in those jurisdictions. This has been a hot topic in the U.S. and globally following the U.S. Supreme Court’s decision in ‘Harrington v. Purdue Pharma L.P.’ (see our update on this topic here), which barred the use of non-consensual third party releases in Chapter 11 bankruptcy proceedings. We consider the Supreme Court’s decision and its impact on future Chapter 11 plans, how other jurisdictions approach third party releases, and the broader implications on cross-border restructurings and the recognition of foreign proceedings incorporating third party releases in the U.S. via Chapter 15.