Debtwire reports on a recent panel discussion at the American Bankruptcy Institute’s Mid-Atlantic Bankruptcy Workshop entitled, “The Increasing Use of Chapter 11 to Resolve Sexual Abuse Scandals.” Brent Weisenberg moderated the discussion about how debtors such as the Boy Scouts, various Catholic dioceses, The Weinstein Company, and USA Gymnastics are using bankruptcy to resolve mass sexual assault liability and how this approach is testing the Chapter 11 process. For example, Weisenberg notes, third-party releases can create challenges for tort committees in diocese bankruptcies. "The parishes don't file for bankruptcy. They sit on the sidelines for the entirety of the bankruptcy saying, ‘We're not part of this case, our assets are not part of this case, you can't get discovery from us, we're a nonparty.' But then comes the plan, and they want a release. The question that a lot of survivors and claimants have is, how do you have it both ways? If you want to receive a release, then don't you have to participate in the bankruptcy?” Weisenberg says that, so far, many of these issues have been sidestepped by settlement agreements. Lowenstein Sandler LLP represents the Official Committee of Tort Claimant Creditors in The Diocese of Camden, New Jersey, bankruptcy case. (subscription required to access article)