The Third Circuit has addressed the tension that may exist between the needs of a bankrupt debtor attempting to reorganize and the rights of nondebtor litigants. The court held that the doctrine of "equitable mootness," regarding an appeal, may not be applied merely when a Chapter 11 plan for reorganization has been substantially consummated, but instead requires that the appeal at issue would actually undermine that plan.
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BANKRUPTCY LAW
Third Circuit Protects Post-Confirmation Appeal Rights
New Jersey Law Journal
January 31, 2013
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