In This Issue:
First Impressions: Third Circuit Scuttles Triangular Setoff in Bankruptcy
In In re Orexigen Therapeutics, Inc., 990 F.3d 748 (3d Cir. 2021), the U.S. Court of Appeals for the Third Circuit ruled as a matter of first impression that “triangular setoff” does not satisfy the Bankruptcy Code’s “mutuality” requirement. [read more …]
Should Equitable Mootness Bar Appeals Only of Chapter 11 Plan Confirmation Orders?
As demonstrated by a ruling recently handed down by the U.S. District Court for the Northern District of Texas, courts disagree on whether equitable mootness should apply only to appeals of plan confirmation orders. In Harden Healthcare LLC v. OLP Wyoming Springs LLC (In re Senior Care Centers, LLC), 2021 WL 632779 (N.D. Tex. Feb. 18, 2021), the district court affirmed a bankruptcy court order approving a settlement reached in connection with a sale transaction. In so ruling, the court held that the appeal was neither…