SECOND CIRCUIT EXPANDS STANDARD FOR APPROVAL OF A SETTLEMENT UNDER BANKRUPTCY RULE 9019

In Motorola, Inc. v. Official Committee of Unsecured Creditors (In re Iridium Operating LLC), the US Court of Appeals for the Second Circuit held that the mort important factor for a bankruptcy court to consider in approving a pre-plan settlement pursuant to Bankruptcy Rule 9019 is whether the settlement's distribution scheme complies with the Bankruptcy Code's priority scheme.