'Millennium Lab': the Death Knell for Non-Consensual, Third-Party Releases?
One of the principal goals of Chapter 11 is to provide the debtor with a "fresh start" upon emergence. To accomplish this goal, the Bankruptcy Code provides a broad release and discharge of claims against the debtor. But this is not always enough to bring the case to a successful resolution. In exchange for contributing to the case, non-debtors often insist on receiving their own release of liability, not only from claims belonging to the debtor, but the claims of third-parties too. This second type of release is commonly referred to as a "non-debtor, third-party release."