Does a company that goes through Chapter 11 reorganization have the ability to sue for damages for something that happened prior to the Chapter 11?
2 Answers from Attorneys
Yes. If the debtor is in possession of its assets, the debtor in possession can sue. If there's a trustee, the trustee can sue.
But there can be exceptions. If there's a confirmed plan, one would need to examine the plan to determine if the cause of action was released, or if it was not preserved. There can be other exceptions also. It's like the old joke: Doctor, after this surgery will I be able to play the piano? Great, because I could never play before.
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