A U.S. district court has questioned the authority of bankruptcy courts to issue non-consensual third-party releases as part of a plan of reorganization. The U.S. District Court for the Eastern District of Virginia vacated the confirmation order in the Mahwah Bergen Retail Group, Inc. (f/k/a Ascena Retail Group, Inc.) Chapter 11 cases on the grounds that the plan contained impermissible non-consensual third-party releases. The court attributed its ruling, in part, to the fact that the “ubiquity of third-party releases in the Richmond Division demands even greater scrutiny of the propriety of such releases.”

Commentary from Schulte Roth & Zabel partners Eleazer Klein and Adriana Schwartz is featured in the first of a two-part article series from Hedge Fund Law Report on the SEC’s proposed changes to Section 13d of the 1934 Securities Exchange Act. To read the article, click here. 

Experts have been breathlessly following Musk’s Twitter feed for possible clues about his next moves, a testament to the unusual nature of this situation. One scenario: Musk could launch a conditional tender offer, making the sale of the shares contingent on the Twitter board withdrawing the pill, says Ele Klein, SRZ partner and head of the firm’s M&A and Securities Group. To read the CNN Business article, click here.