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This bill amends federal bankruptcy law to prohibit courts from releasing the liability of nondebtor entities (such as parent companies, guarantors, or other third parties) without their express written consent in bankruptcy proceedings. The bill creates narrow exceptions for asset sales, indemnity claims, and certain court-approved dispositions with explicit consent. It also establishes a 90-day limit on temporary stays or injunctions against nondebtor entities in Chapter 11 cases and requires dismissal of cases involving divisional mergers designed to separate assets from liabilities.
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