According to the U.S. Bankruptcy Court docket, the Court issued an order confirming electric car manufacturer ECOtality’s Joint Chapter 11 Plan of Reorganization. According to the docket, “The United States Trustee objected to confirmation, arguing that the release and exculpation provisions are contrary to the Bankruptcy Code and Ninth Circuit authority.”
The Court continues, “The court declines to exercise any authority it may have to confirm a chapter 11 plan that includes the broad releases and exculpations. The court finds that the proposed releases, injunction and exculpation clauses are provisions severable from the Joint Plan. The court therefore severs these issues from the other confirmation issues so that the court may confirm the Joint Plan.”
This electric vehicle charging system provider filed for Chapter 11 protection on September 16, 2013, listing $54 million in pre-petition assets. Read more about ECTY’s bankruptcy case.