Gol Appeals Ruling Voiding Liability Releases in Bankruptcy Plan

Brazilian airline Gol Linhas Aéreas Inteligentes SA appealed a federal judge’s decision that struck litigation releases for nonbankrupt entities from its reorganization plan.

The foreign carrier filed its notice of appeal Wednesday to Judge Denise Cote’s ruling in the US District Court for the Southern District of New York, which eliminated third party liability shields in light of the US Supreme Court’s 2024 decision in Harrington v. Purdue Pharma LP.

Cote concluded in her Dec. 1 opinion that Gol’s plan failed to give creditors a real opportunity to “opt out” of the releases and that consent couldn’t be implied ...