Enjoining Actions Against Non-Debtors

A recent decision by the Seventh Circuit, appears to change the playing field in debtors' favor. <I>In re Caesars Entm't Operating Co</I> established a two-part test that appears far more favorable to debtors than the previous standards applied to such injunctions.

11 minute read June 01, 2016 at 12:00 AM
By
Todd L. Padnos and Matt Klinger
Enjoining Actions Against Non-Debtors

In bankruptcy cases, debtors often believe that enjoining a third party's action against a non-debtor can help preserve or rehabilitate the estate. But debtors rarely seek to enjoin actions against non-debtors, even though bankruptcy courts have the power to grant such injunctions under 11 U.S.C. ' 105(a).

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