A Modest Proposal on Exculpatory Clauses: Add a Pinch of Certainty to Incentivize Plan Proponents

November 01, 2015

On Dec. 8, 2014, the ABI Commission to Study the Reform of Chapter 11 proposed changes to the Bankruptcy Code in response to recent developments in case law and evolving standards in the marketplace. While the Commission's proposal addressed many features of the Code, this article focuses on its recommendations regarding the inclusion of exculpatory clauses in chapter 11 reorganization plans. This article also summarizes the ABI Commission's proposals on the subject, including why it thought changes are necessary, and highlights where additional work is needed.

Read "A Modest Proposal on Exculpatory Clauses: Add a Pinch of Certainty to Incentivize Plan Proponents."