Panel:“ Hot Topics & Current Trends: Views from the Bench”
Summary by Jasmine Cheung – NextGen Class XV
The final panel of the conference brought together a distinguished group of judges to examine key developments in international insolvency. Moderated by Lisa Laukitis( United States), the panel featured Hon. Andrea Galhardo Palma( Brazil), Chief Justice Geoffrey B. Morawetz( Canada), Hon. Martin Glenn( United States), and Justice Kannan Ramesh( Singapore).
The discussion opened with the ramifications of the US Supreme Court’ s ruling in Purdue Pharma, which held that the Bankruptcy Code did not authorise non-consensual third-party releases in Chapter 11 cases. Judge Glenn explored whether Chapter 15 might offer a pathway 48 for recognising foreign plans that include such releases, citing recent cases such as the Fossil Group restructuring, where US courts recognised UK schemes containing such releases. The critical inquiry, he emphasised, is whether the process resulted in insider exploitation, manipulation, or the thwarting of third-party expectations. Further, he highlighted the underutilised potential of Section 1522 of the Bankruptcy Code, which requires the interests of creditors to be sufficiently protected before relief is granted. Chief Justice Morawetz offered the Canadian perspective, noting that Canadian courts have developed a framework for approving third-party releases which requires a substantial contribution by the released party, a clear connection to the insolvency, and the lack of a viable alternative. Justice
Ramesh added that Singapore courts can grant third-party releases where a sufficient nexus exists between the release and the liabilities in question.
The panel later devoted considerable attention to the tension between arbitration and insolvency proceedings. Judge Palma highlighted that since a 2020 reform, Brazilian law permits arbitration to coexist with insolvency proceedings, but draws a firm line: matters relating to payment, set-off, and enforcement remain within the exclusive competence of the insolvency court. Chief Justice Morawetz noted that while the Supreme Court of Canada recognises the importance of party autonomy,
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