,,ii  #aagth ,,congress  #ast ,session  
,s4 #bdig  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bh1     
#bjba,ms4 ,warren 7for herself1 ,mr4    
,durbin1 and ,mr4 ,blumenthal7          
introduced the following bill2 which was
 read twice and referred to the         
,committee on the ,judiciary  ,a ,,bill 
,to amend title #aa1 ,united ,states    
,code1 to prohibit nonconsensual release
 of a nondebtor entity's liability to an
 entity other than the debtor1 and for  
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,nondebtor     
,release ,prohibition ,act of #bjba4    
#b4 ,prohibition of nondebtor releases  
7a7 ,in general ,chapter #a of title    
#aa1 ,united ,states ,code1 is amended  
by adding at the end the following3     
#aac4 ,prohibition of nondebtor releases
  7a7 ,except as provided in subsection 
7b7 of this section1 subsections        
7a77#c71 7g71 7h71 or 7i7 of section    
#ebd1 section #abja1 and section #acja1 
the court may not-- 7#a7 with respect to

 the liability of an entity other than  
the debtor or the estate on1 or the     
liability of property of an entity other
 than the debtor or the estate for1 a   
claim or cause of action of an entity   
other than the debtor or the estate--   
7,a7 approve any provision1 in a plan of
 reorganization or otherwise1 for the   
discharge1 release1 termination1 or     
modification of such liability2 or  7,b7
 order the discharge1 release1          
termination1 or modification of such    
liability2 or  7#b7 with respect to a   
claim or cause of action of an entity   
other than the debtor or the estate     
against an entity other than the debtor 
or the estate1 or against property of an
 entity other than the debtor or the    
estate1 enjoin-- 7,a7 the commencement  
or continuation 7including the issuance 
or employment of process7 of a judicial1
 administrative1 or other action or     
proceeding to assert1 assess1 collect1  
recover1 offset1 recoup1 or otherwise   
enforce such claim or cause of action2  

or  7,b7 any act to assert1 assess1     
collect1 recover1 offset1 recoup1 or    
otherwise enforce such claim or cause of
 action4  7b7 ,nothing in subsection 7a7
 of this section shall affect any power 
the court may have-- 7#a7 to authorize a
 sale1 transfer1 or other disposition of
 property free and clear of claims or   
interests2  7#b7 to prevent an entity   
other than the debtor or the estate from
 exercising control over or otherwise   
interfering with a right or interest    
7including a claim or cause of action7  
that is property of the estate2  7#c7 to
 bar a claim or cause of action for     
indemnity1 reimbursement1 contribution1 
or subrogation against an entity that   
the estate has released from a claim or 
cause of action for which the holder of 
the barred claim or cause of action also
 is or may be liable or has or may have 
secured2  7#d7 under applicable         
nonbankruptcy law1 title #bh1 or the    
,federal ,rules of ,bankruptcy          
,procedure1 with respect to any claim or

 cause of action the court is hearing   
under section #aeg7;a7 or #accd7;b7 of  
title #bh2  7#e7 to approve any         
disposition of a claim or cause of      
action of an entity other than the      
debtor or the estate to which such      
entity expressly consents in a signed   
writing provided that-- 7,a7 such       
consent is given only after clear and   
conspicuous notice to such entity of the
 proposed disposition in language       
appropriate for the typical holder of   
such claim or cause of action2  7,b7    
such consent cannot be given by-- 7i7   
accepting a proposed plan2 or  7ii7     
failing to accept or reject a proposed  
plan1 failing to object to a proposed   
plan1 or any other silence or inaction2 
and  7,c7 treatment of such entity1 and 
any claims or interests of such entity1 
under a plan cannot be more or less     
favorable by reason of such entity's    
consent or failure to consent2 or  7#f7 
to enjoin the commencement or           
continuation 7including the issuance or 

employment of process7 of a judicial1   
administrative1 or other action or      
proceeding against an entity appointed  
or employed 7or whose appointment or    
employment was approved7 by or under the
 auspices of the court1 in another court
 and without leave of the court1 with   
respect to acts or omissions for which  
the entity was so appointed or employed4
  7c7 ,in a case under chapter #aa of   
this title1 no order or decree          
temporarily staying or enjoining1       
pursuant to this title1 the commencement
 or continuation 7including the issuance
 or employment of process7 of a         
judicial1 administrative1 or other      
action or proceeding to assert1 assess1 
collect1 recover1 offset1 recoup1 or    
otherwise enforce a claim or cause of   
action against an entity other than the 
debtor or the estate against an entity  
other than the debtor or the estate1 or 
against property of an entity other than
 the debtor or the estate1 shall extend 
7or be extended7 beyond #ij days after  

the date of the order for relief without
 the express consent of the entity whose
 claim or cause of action is stayed or  
enjoined4  7d7 ,nothing in subsection   
7b7 or 7c7 shall be construed to        
authorize relief within the scope of    
subsection 7b7 or 7c74  4  7b7 ,clerical
 amendment ,the table of sections for   
chapter #a of title #aa1 ,united ,states
 ,code1 is amended by adding at the end 
the following3 #aac4 ,prohibition of    
nondebtor releases44  #c4 ,appeal of    
nondebtor stays ,section #aeh of title  
#bh1 ,united ,states ,code1 is amended--
 7#a7 in subsection 7a71 by striking    
,the and inserting ,except as provided  
in subsection 7d77#c71 the2 and  7#b7 by
 inserting after subsection 7d77#b7 the 
following3  7#c7 7,a7 ,the appropriate  
court of appeals shall have jurisdiction
 of appeals from all orders and decrees 
7whether interlocutory or final7        
temporarily staying or enjoining 7or    
increasing the duration of any temporary
 stay or injunction of7 the commencement

 or continuation 7including the issuance
 or employment of process7 of a         
judicial1 administrative1 or other      
action or proceeding to assert1 assess1 
collect1 recover1 offset1 recoup1 or    
otherwise enforce a claim or cause of   
action of an entity other than the      
debtor or the estate against an entity  
other than the debtor or the estate1 or 
against property of an entity other than
 the debtor or the estate1 entered in a 
case under chapter #aa of title #aa by--
 7i7 a bankruptcy judge under section   
#aeg of this title2 or  7ii7 a district 
court under section #accd of this title4
  7,b7 ,if an appeal is taken under     
subparagraph 7,a71 the stay order or    
decree shall immediately terminate and  
dissolve and be of no further force or  
effect #ij days after its issuance by   
the bankruptcy judge or district court1 
unless the appeal is dismissed or the   
court of appeals affirms the stay order 
or decree before that date4  4  #d4     
,divisional mergers ,section #aaab of   

title #aa1 ,united ,states ,code1 is    
amended-- 7#a7 by redesignating         
subsection 7f7 as subsection 7g72 and   
7#b7 by inserting after subsection 7e7  
the following3  7f7 ,on a request of a  
party in interest1 and after notice and 
a hearing1 the court shall dismiss a    
case under this chapter if the debtor or
 a predecessor of the debtor was the    
subject of1 or was formed or organized  
in connection with a divisional merger  
or equivalent transaction or            
restructuring that-- 7#a7 had the intent
 or foreseeable effect of-- 7,a7        
separating material assets from material
 liabilities of an entity eligible to be
 a debtor under this title2 and  7,b7   
assigning or allocating all or a        
substantial portion of those liabilities
 to the debtor1 or the debtor assuming  
or retaining all or a substantial       
portion of those liabilities2 and  7#b7 
occurred during the #aj-year period     
preceding the date of the filing of the 
petition4  4  #e4 ,rule of construction 

,nothing in this ,act1 or the amendments
 made by this ,act1 shall be construed  
to independently grant the court        
authority to issue nondebtor releases1  
injunctions1 or stays in connection with
 an order for relief under chapter #aa  
of title #aa1 ,united ,states ,code1 or 
in connection with an order confirming a
 plan of reorganization1 nor shall      
anything in this ,act or such amendments
 be construed to imply that any other   
provision of title #aa of such ,code or 
of nonbankruptcy law grants such        
authority4  #f4 ,effective date  7a7 ,in
 general ,except as provided in         
subsection 7b71 this ,act and the       
amendments made by this ,act shall take 
effect on the date of the enactment of  
this ,act and shall apply to any case   
under title #aa1 ,united ,states ,code1 
that is-- 7#a7 pending in bankruptcy as 
of the date of the enactment of this    
,act2 or  7#b7 filed or reopened on or  
after the date of the enactment of this 
,act4  7b7 ,validity of final orders    

,nothing in this ,act1 or the amendments
 made by this ,act1 shall affect the    
validity of any final judgment1 order1  
or decree as applied under section #aeh 
of title #bh1 ,united ,states ,code1    
entered before the date of the enactment
 of this ,act4