,,ii #aag? ,,congress #a/ ,session ,s4 #bdig ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bh1 #bjba,ms4 ,w>r5 7= h]self1 ,mr4 ,durb91 & ,mr4 ,blum5?al7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to am5d title #aa1 ,unit$ ,/ates ,code1 to prohibit noncons5sual release ( a nondebtor entity's liability to an entity o!r ?an ! debtor1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,nondebtor ,release ,prohibition ,act ( #bjba4 #b4 ,prohibition ( nondebtor releases 7a7 ,9 g5]al ,*apt] #a ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #aac4 ,prohibition ( nondebtor releases 7a7 ,except z provid$ 9 subsection 7b7 ( ?is section1 subsections 7a77#c71 7g71 7h71 or 7i7 ( section #ebd1 section #abja1 & section #acja1 ! c\rt may n-- 7#a7 ) respect to ! liability ( an entity o!r ?an ! debtor or ! e/ate on1 or ! liability ( prop]ty ( an entity o!r ?an ! debtor or ! e/ate =1 a claim or cause ( action ( an entity o!r ?an ! debtor or ! e/ate-- 7,a7 approve any provision1 9 a plan ( reorganization or o!rwise1 = ! dis*>ge1 release1 t]m9ation1 or modification ( su* liability2 or 7,b7 ord] ! dis*>ge1 release1 t]m9ation1 or modification ( su* liability2 or 7#b7 ) respect to a claim or cause ( action ( an entity o!r ?an ! debtor or ! e/ate aga9/ an entity o!r ?an ! debtor or ! e/ate1 or aga9/ prop]ty ( an entity o!r ?an ! debtor or ! e/ate1 enjo9-- 7,a7 ! comm5cem5t or cont9uation 7includ+ ! issuance or employm5t ( process7 ( a judicial1 adm9i/rative1 or o!r action or proce$+ to ass]t1 assess1 collect1 recov]1 (fset1 rec\p1 or o!rwise en=ce su* claim or cause ( action2 or 7,b7 any act to ass]t1 assess1 collect1 recov]1 (fset1 rec\p1 or o!rwise en=ce su* claim or cause ( action4 7b7 ,no?+ 9 subsection 7a7 ( ?is section %all affect any p[] ! c\rt may h-- 7#a7 to au?orize a sale1 transf]1 or o!r disposition ( prop]ty free & cle> ( claims or int]e/s2 7#b7 to prev5t an entity o!r ?an ! debtor or ! e/ate f ex]cis+ control ov] or o!rwise int]f]+ ) a "r or int]e/ 7includ+ a claim or cause ( action7 t is prop]ty ( ! e/ate2 7#c7 to b> a claim or cause ( action = indemnity1 reimbursem5t1 contribution1 or subrogation aga9/ an entity t ! e/ate has releas$ f a claim or cause ( action = :i* ! hold] ( ! b>r$ claim or cause ( action also is or may be liable or has or may h secur$2 7#d7 "u applicable nonbankruptcy law1 title #bh1 or ! ,f$]al ,rules ( ,bankruptcy ,proc$ure1 ) respect to any claim or cause ( action ! c\rt is he>+ "u section #aeg7;a7 or #accd7;b7 ( title #bh2 7#e7 to approve any disposition ( a claim or cause ( action ( an entity o!r ?an ! debtor or ! e/ate to :i* su* entity expressly cons5ts 9 a sign$ writ+ provid$ t-- 7,a7 su* cons5t is giv5 only aft] cle> & conspicu\s notice to su* entity ( ! propos$ disposition 9 language appropriate = ! typical hold] ( su* claim or cause ( action2 7,b7 su* cons5t _c be giv5 by-- 7i7 accept+ a propos$ plan2 or 7ii7 fail+ to accept or reject a propos$ plan1 fail+ to object to a propos$ plan1 or any o!r sil5ce or inaction2 & 7,c7 treatm5t ( su* entity1 & any claims or int]e/s ( su* entity1 "u a plan _c be m or less favorable by reason ( su* entity's cons5t or failure to cons5t2 or 7#f7 to enjo9 ! comm5cem5t or cont9uation 7includ+ ! issuance or employm5t ( process7 ( a judicial1 adm9i/rative1 or o!r action or proce$+ aga9/ an entity appo9t$ or employ$ 7or ^: appo9tm5t or employm5t 0 approv$7 by or "u ! auspices ( ! c\rt1 9 ano!r c\rt & )\t leave ( ! c\rt1 ) respect to acts or omissions = :i* ! entity 0 s appo9t$ or employ$4 7c7 ,9 a case "u *apt] #aa ( ?is title1 no ord] or decree tempor>ily /ay+ or enjo9+1 pursuant to ?is title1 ! comm5cem5t or cont9uation 7includ+ ! issuance or employm5t ( process7 ( a judicial1 adm9i/rative1 or o!r action or proce$+ to ass]t1 assess1 collect1 recov]1 (fset1 rec\p1 or o!rwise en=ce a claim or cause ( action aga9/ an entity o!r ?an ! debtor or ! e/ate aga9/ an entity o!r ?an ! debtor or ! e/ate1 or aga9/ prop]ty ( an entity o!r ?an ! debtor or ! e/ate1 %all ext5d 7or be ext5d$7 beyond #ij days aft] ! date ( ! ord] = relief )\t ! express cons5t ( ! entity ^: claim or cause ( action is /ay$ or enjo9$4 7d7 ,no?+ 9 subsection 7b7 or 7c7 %all be con/ru$ to au?orize relief )9 ! scope ( subsection 7b7 or 7c74 4 7b7 ,cl]ical am5dm5t ,! table ( sections = *apt] #a ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #aac4 ,prohibition ( nondebtor releases44 #c4 ,appeal ( nondebtor /ays ,section #aeh ( title #bh1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ ,! & ins]t+ ,except z provid$ 9 subsection 7d77#c71 !2 & 7#b7 by ins]t+ aft] subsection 7d77#b7 ! foll[+3 7#c7 7,a7 ,! appropriate c\rt ( appeals %all h jurisdiction ( appeals f all ord]s & decrees 7:e!r int]locutory or f9al7 tempor>ily /ay+ or enjo9+ 7or increas+ ! duration ( any tempor>y /ay or injunction (7 ! comm5cem5t or cont9uation 7includ+ ! issuance or employm5t ( process7 ( a judicial1 adm9i/rative1 or o!r action or proce$+ to ass]t1 assess1 collect1 recov]1 (fset1 rec\p1 or o!rwise en=ce a claim or cause ( action ( an entity o!r ?an ! debtor or ! e/ate aga9/ an entity o!r ?an ! debtor or ! e/ate1 or aga9/ prop]ty ( an entity o!r ?an ! debtor or ! e/ate1 ent]$ 9 a case "u *apt] #aa ( title #aa by-- 7i7 a bankruptcy judge "u section #aeg ( ?is title2 or 7ii7 a di/rict c\rt "u section #accd ( ?is title4 7,b7 ,if an appeal is tak5 "u subp>agraph 7,a71 ! /ay ord] or decree %all imm$iately t]m9ate & dissolve & be ( no fur!r =ce or effect #ij days aft] its issuance by ! bankruptcy judge or di/rict c\rt1 unless ! appeal is dismiss$ or ! c\rt ( appeals affirms ! /ay ord] or decree be=e t date4 4 #d4 ,divisional m]g]s ,section #aaab ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsection 7f7 z subsection 7g72 & 7#b7 by ins]t+ aft] subsection 7e7 ! foll[+3 7f7 ,on a reque/ ( a p>ty 9 int]e/1 & aft] notice & a he>+1 ! c\rt %all dismiss a case "u ?is *apt] if ! debtor or a pr$ecessor ( ! debtor 0 ! subject (1 or 0 =m$ or organiz$ 9 connection ) a divisional m]g] or equival5t transaction or re/ructur+ t-- 7#a7 _h ! int5t or =eseeable effect (-- 7,a7 sep>at+ mat]ial assets f mat]ial liabilities ( an entity eligible to be a debtor "u ?is title2 & 7,b7 assign+ or allocat+ all or a sub/antial portion ( ^? liabilities to ! debtor1 or ! debtor assum+ or reta9+ all or a sub/antial portion ( ^? liabilities2 & 7#b7 occurr$ dur+ ! #aj-ye> p]iod prec$+ ! date ( ! fil+ ( ! petition4 4 #e4 ,rule ( con/ruction ,no?+ 9 ?is ,act1 or ! am5dm5ts made by ?is ,act1 %all be con/ru$ to indep5d5tly grant ! c\rt au?ority to issue nondebtor releases1 injunctions1 or /ays 9 connection ) an ord] = relief "u *apt] #aa ( title #aa1 ,unit$ ,/ates ,code1 or 9 connection ) an ord] confirm+ a plan ( reorganization1 nor %all any?+ 9 ?is ,act or su* am5dm5ts be con/ru$ to imply t any o!r provision ( title #aa ( su* ,code or ( nonbankruptcy law grants su* au?ority4 #f4 ,effective date 7a7 ,9 g5]al ,except z provid$ 9 subsection 7b71 ?is ,act & ! am5dm5ts made by ?is ,act %all take effect on ! date ( ! enactm5t ( ?is ,act & %all apply to any case "u title #aa1 ,unit$ ,/ates ,code1 t is-- 7#a7 p5d+ 9 bankruptcy z ( ! date ( ! enactm5t ( ?is ,act2 or 7#b7 fil$ or reop5$ on or aft] ! date ( ! enactm5t ( ?is ,act4 7b7 ,validity ( f9al ord]s ,no?+ 9 ?is ,act1 or ! am5dm5ts made by ?is ,act1 %all affect ! validity ( any f9al judgm5t1 ord]1 or decree z appli$ "u section #aeh ( title #bh1 ,unit$ ,/ates ,code1 ent]$ be=e ! date ( ! enactm5t ( ?is ,act4