Nondebtor Release Prohibition Act of 2024

[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 9223 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 9223 To amend title 11, United States Code, to prohibit nonconsensual release of a nondebtor entity's liability to an entity other than the debtor, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES July 30, 2024 Mr. Nadler (for himself, Mr. Cohen, Ms. Norton, Ms. Porter, Mr. DeSaulnier, and Mr. Johnson of Georgia) introduced the following bill; which was referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend title 11, United States Code, to prohibit nonconsensual release of a nondebtor entity's liability to an entity other than the debtor, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Nondebtor Release Prohibition Act of 2024''. SEC. 2. PROHIBITION OF NONDEBTOR RELEASES. (a) In General.--Chapter 1 of title 11, United States Code, is amended by adding at the end the following: ``Sec. 113. Prohibition of nondebtor releases ``(a) Except as provided in subsection (b) of this section, subsection (a)(3), (g), (h), or (i) of section 524, section 1201, and section 1301, the court may not-- ``(1) with respect to the liability of an entity other than the debtor or the estate on, or the liability of property of an entity other than the debtor or the estate for, a claim or cause of action of an entity other than the debtor or the estate-- ``(A) approve any provision, in a plan of reorganization or otherwise, for the discharge, release, termination, or modification of such liability; or ``(B) order the discharge, release, termination, or modification of such liability; or ``(2) with respect to a claim or cause of action of an entit