• Bankruptcy Loses Arguments for Special Relief Under Prepetition Agreements for Environmental Liability
  • February 8, 2013 | Author: Levi Jones
  • Law Firm: Schnader Harrison Segal & Lewis LLP - Washington Office
  • A recent case from the U.S. District Court for the Southern District of New York addressed the recurring conflict between the goals of bankruptcy law, which seeks to give debtors a fresh start, and the goals of federal and state environmental cleanup laws, which seek to ensure remediation of contaminated properties. The court’s decision provides useful insight regarding when and how bankruptcy law should convert a prepetition contractual obligation to remediate a site into a claim to be managed like any unsecured creditor claims in a bankruptcy proceeding.