In re Fairchild Aircraft Corp.

FAC (debtor), a commuter airplane manufacturer, sold its assets to FAI through a bankruptcy-approved asset purchase agreement that released FAI from liability for future defect claims on planes sold before the acquisition, but the reorganization plan never identified or addressed potential future liabilities from such defects, and the confirmation order simply enjoined all creditors from pursuing claims against the estate's property. Three years after confirmation, a FAC plane built and sold before the bankruptcy crashed and killed four people, and FAI was sued under a successor-liability theory; FAI filed an adversary proceeding seeking a declaration that the confirmation order barred these claims and moved for summary judgment.