{"id":184,"date":"2026-08-13T16:51:01","date_gmt":"2026-08-13T20:51:01","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/?p=184"},"modified":"2026-08-13T16:51:03","modified_gmt":"2026-08-13T20:51:03","slug":"third-circuit-affirms-subchapter-v-eligibility-insider-settlement-approval","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/2026\/08\/13\/third-circuit-affirms-subchapter-v-eligibility-insider-settlement-approval\/","title":{"rendered":"Third Circuit Affirms Subchapter V Eligibility and Insider Settlement Approval"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/www.duanemorris.com\/attorneys\/lawrencejkotler.html\">Lawrence J. Kotler<\/a> and <a href=\"https:\/\/www.duanemorris.com\/attorneys\/hunterblume.html\">Hunter C. Blume<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a recent decision, the U.S. Court of Appeals for the Third Circuit, in the case of <em>In re Alecto Healthcare Services LLC<\/em>, issued a precedential opinion affirming a debtor\u2019s eligibility to proceed under Subchapter V of Chapter 11 and the ability of a debtor to confirm a reorganization plan that settled potential fraudulent transfer claims against the debtor\u2019s insiders. The decision is notable for its treatment of when a debt is \u201ccontingent\u201d and \u201cunliquidated\u201d for purposes of the Subchapter V debt limit and the deferential standard governing bankruptcy court approval of insider settlements over creditor objections.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/emarketing.duanemorris.com\/e\/31uql6mqxqvz4la\/8440dd1b-e3c1-44fd-a285-abf9c2106331\" target=\"_blank\" rel=\"noreferrer noopener\">Read the full <em>Alert<\/em> on the Duane Morris LLP website<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Lawrence J. Kotler and Hunter C. Blume In a recent decision, the U.S. Court of Appeals for the Third Circuit, in the case of In re Alecto Healthcare Services LLC, issued a precedential opinion affirming a debtor\u2019s eligibility to proceed under Subchapter V of Chapter 11 and the ability of a debtor to confirm &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/2026\/08\/13\/third-circuit-affirms-subchapter-v-eligibility-insider-settlement-approval\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Third Circuit Affirms Subchapter V Eligibility and Insider Settlement Approval&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6,8,84,83,82],"ppma_author":[37],"class_list":["post-184","post","type-post","status-publish","format-standard","hentry","category-general","tag-bankruptcy","tag-chapter-11","tag-hunter-blume","tag-lawrence-kotler","tag-subchapter-v"],"authors":[{"term_id":37,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-content\/uploads\/sites\/47\/2020\/10\/dmlogo.jpg","author_category":"1","last_name":"Davies","first_name":"Thomas","job_title":"","user_url":"https:\/\/www.duanemorris.com","description":"<a href=\"http:\/\/www.duanemorris.com\">Visit the Duane Morris website.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts\/184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/comments?post=184"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/posts\/184\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/media?parent=184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/categories?post=184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/tags?post=184"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/businessreorganizationfinancialrestructuring\/wp-json\/wp\/v2\/ppma_author?post=184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}