A Delaware federal judge has ruled that bankruptcy courts have the constitutional authority to grant third-party liability releases in confirming restructuring plans without creditor consent.

The ruling from U.S. Chief Judge Leonard P. Stark of the District of Delaware upheld a Delaware bankruptcy judge’s decision to grant the releases in lab testing firm Millennium Lab Holdings II’s Chapter 11 proceedings, and rejected the argument that the move was unconstitutional under U.S. Supreme Court precedent.