Davis Polk partners and Restructuring co-heads Marshall Huebner and Damian Schaible discussed notable decisions from 2022 and the outlook for restructuring in 2023 with Turnarounds & Workouts. Marshall pointed to the unexpected Purdue district court decision regarding third party releases as particularly noteworthy. “Third party releases have been an important feature of plans of reorganization for decades,” he explained. “Opining that third party releases are per se unlawful has already led to notable changes in jurisprudence and practice. And the awaited Second Circuit decision will, one way or another, lead to further changes.”

Regarding major trends, Damian noted that “one of the most significant trends from 2022 that will continue and increase in importance is the use by companies of liability management techniques to avoid full-scale traditional restructurings.”

“More Liability Management Deals Seen,” Turnarounds & Workouts (January 2023 issue) (subscription required)