Third Circuit Clarifies Appeal Process in Settlement and Reorganization Plan Disputes

The Third Circuit recently took a “pragmatic approach” when affirming lower court orders denying a stay of bankruptcy settlement distributions pending appeal. After holding that the district court’s “stay denial order” was “final” for jurisdictional purposes, it also confirmed “the applicable standard of review” on motions for stays pending appeals. In this article, of counsel Michael Cook discusses how the Third Circuit’s decision in S.S. Body Armor I, Inc. clarifies the appeal process in settlement and reorganization plan disputes.