When will a debtor or trustee have standing to pursue causes of actions after a plan of reorganization has been confirmed?
Section 1123(b)(3)(B) of the Bankruptcy Code (11 U.S.C. §§ 101–1532 (2006)) is a very important provision within the Bankruptcy Code. This section allows a debtor or a trustee to bring claims and causes of actions against a debtor’s creditors or other interested parties after a plan of reorganization has been confirmed. There are, however, varying degrees of interpretations as to the application of the section. This article highlights various bankruptcy and appellate court decisions interpreting section 1123(b)(3)(B) of the Bankruptcy Code.