spect to acts or omissions for which the entity was 
so appointed or employed. 
‘‘(c) In a case under chapter 11 of this title, no order 
or decree temporarily staying or enjoining, pursuant to 
this title, the commencement or continuation (including 
the issuance or employment of process) of a judicial, ad-
ministrative, or other action or proceeding to assert, as-
sess, collect, recover, offset, recoup, or otherwise enforce 
a claim or cause of action against an entity other than 
the debtor or the estate against an entity other than the 
debtor or the estate, or against property of an entity other 
than the debtor or the estate, shall extend (or be extended) 
beyond 90 days after the date of the order for relief with-
out the express consent of the entity whose claim or cause 
of action is stayed or enjoined. 
‘‘(d) Nothing in subsection (b) or (c) shall be con-
strued to authorize relief within the scope of subsection 
(b) or (c).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 1 of title 11, United States Code, is amended 
by adding at the end the following: 
‘‘113. Prohibition of nondebtor releases.’’. 
SEC. 3. APPEAL OF NONDEBTOR STAYS. 
Section 158 of title 28, United States Code, is 
amended— 
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(1) in subsection (a), by striking ‘‘The’’ and in-
serting ‘‘Except as provided in subsection (d)(3), 
the’’; and 
(2) by inserting after subsection (d)(2) the fol-
lowing: 
‘‘(3)(A) The appropriate court of appeals shall 
have jurisdiction of appeals from all orders and de-
crees (whether interlocutory or final) temporarily 
staying or enjoining (or increasing the duration of 
any temporary stay or injunction of) the commence-
ment or continuation (including the issuance or em-
ployment of process) of a judicial, administrative, or 
other action or proceeding to assert, assess, collect, 
recover, offset, recoup, or otherwise enforce a claim 
or cause of action of an entity other than the debtor 
or the estate against an entity other than the debtor 
or the estate, or against property of an entity other 
than the debtor or the estate, entered in a case 
under chapter 11 of title 11 by— 
‘‘(i) a bankruptcy judge under section 157 
of this title; or 
‘‘(ii) a district court under section 1334 of 
this title. 
‘‘(B) If an appeal is taken under subparagraph 
(A), the stay order or decree shall immediately ter-
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minate and dissolve and be of no further force or ef-
fect 90 days after its issuance by the bankruptcy 
judge or district court, unless the appeal is dis-
missed or the court of appeals affirms the stay order 
or decree before that date.’’. 
SEC. 4. DIVISIONAL MERGERS. 
Section 1112 of title 11, United States Code, is 
amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) On a request of a party in interest, and after 
notice and a hearing, the court shall dismiss a case under 
this chapter if the debtor or a predecessor of the debtor 
was the subject of, or was formed or organized in connec-
tion with a divisional merger or equivalent transaction or 
restructuring that— 
‘‘(1) had the intent or foreseeable effect of— 
‘‘(A) separating material assets from mate-
rial liabilities of an entity eligible to be a debtor 
under this title; and 
‘‘(B) assigning or allocating all or a sub-
stantial portion of those liabilities to the debtor, 
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or the debtor assuming or retaining all or a 
substantial portion of those liabilities; and 
‘‘(2) occurred during the 10-year period pre-
ceding the date of the filing of the petition.’’. 
SEC. 5. RULE OF CONSTRUCTION. 
Nothing in this Act, or the amendments made by this 
Act, shall be construed to independently grant the court 
authority to issue nondebtor releases, injunctions, or stays 
in connection with an order for relief under chapter 11 
of title 11, United States Code, or in connection with an 
order confirming a plan of reorganization, nor shall any-
thing in this Act or such amendments be construed to 
imply that any other provision of title 11 of such Code 
or of nonbankruptcy law grants such authority. 
SEC. 6. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 
(b), this Act and the amendments made by this Act shall 
take effect on the date of the enactment of this Act and 
shall apply to any case under title 11, United States Code, 
that is— 
(1) pending in bankruptcy as of the date of the 
enactment of this Act; or 
(2) filed or reopened on or after the date of the 
enactment of this Act. 
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(b) VALIDITY OF FINAL ORDERS.—Nothing in this 
Act, or the amendments made by this Act, shall affect the 
validity of any final judgment, order, or decree as applied 
under section 158 of title 28, United States Code, entered 
before the date of the enactment of this Act. 
Æ 
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