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A 3rd Circuit panel recently reversed an order of the Delaware District Court substantively consolidating Owens Corning with its various subsidiaries. The panel's opinion is significant because it's the circuit's first opinion on substantive consolidation under the Bankruptcy Code enacted in 1978, and the panel went to great lengths to set forth certain boundaries and policy considerations that practitioners should keep in mind when applying the extreme, last-resort remedy of substantive consolidation.
September 30, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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