Latest Case Summary on Volo: Behrmann v. National Heritage Foundation, Inc. (4th Cir.)

Date: December 13, 2011

The U.S. Court of Appeals for the Fourth Circuit held that equitable relief in the form of non-debtor release provisions in a reorganization plan is permissible in certain circumstances; however, in confirming the plan at issue the U.S. Bankruptcy Court for the Eastern District of Virginia failed to make sufficient findings of fact in support of its conclusion that the case warranted such equitable relief. Absent these specific findings of fact, the Fourth Circuit found that meaningful review of the decision was not possible and vacated and remanded for further proceedings consistent with its decision.

Originally summarized in the ABI Bankruptcy Brief, December 2011.