Cook Inlet Decision Rightly Protects Deemed Consolidation

Overview


Darren Azman and Michael Galen wrote this bylined article on Alaska Bankruptcy Court case In re Cook Inlet Energy LLC et al., which held that a creditor’s setoff rights apply only to the specific debtor against which the creditor’s claims arise. “The Cook Inlet decision should give debtors confidence that by consolidating debtors for a limited purpose under a plan, they do not open themselves up to the liabilities associated with substantive consolidation,” the authors wrote.