Posts | Bankruptcy Creditor Rights | Turnpage Daily Briefing

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The bankruptcy creditor-rights docket is doctrine-dense this week.

• Fourth Circuit's Cook v. Chapter 13 Trustee (Apr 27, 2026, published): equitable mootness narrowed sharply in single-debtor Chapter 13. The court called it a "narrow, pragmatic doctrine" — not a routine post-confirmation shield. Cross-circuit drift is now severe. 2d Cir. retains its substantial-consummation presumption. 5th Cir. bypasses on the merits. 6th Cir. excludes Ch. 7. The cert vehicle is in sight.

• SDNY Chapter 15 third-party-release ruling (May 2026): District court confirmed nonconsensual third-party releases survive Harrington v. Purdue Pharma when imposed in foreign restructurings recognized via Chapter 15 — applying comity rather than Section 1129. This is the meaningful workaround to Purdue that practice has been watching for. Expect a Second Circuit appeal.

• Delaware bankr. court (Dec 2025) rejected a broad gatekeeper provision citing Highland Capital and Purdue. Drafters can no longer back-door exculpation through gatekeeper language.

• Purdue Pharma plan effective May 1. Knoa Pharma takes the assets. ~$2.4B in initial tranche payments now flowing. ProPublica documenting victim-exclusion gaps.

• J&J's third Texas Two-Step (Red River Talc) is on appeal to the 5th Cir. The DOJ U.S. Trustee is aggressively opposed. Three consecutive J&J losses without a circuit decision endorsing divisional-merger filings on the merits means the practical playbook now favors litigation settlement (3M's $6B AFFF approach) — not bankruptcy.

Watch: Cook en banc petition; Red River Talc briefing schedule; SDNY Chapter 15 release-ruling appeal; Senate Judiciary action on S. 3977 (Subchapter V $7.5M restoration).

#Bankruptcy #Chapter11 #Restructuring #CreditorRights #Confirmation #EquitableMootness #PurdueRelease

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