Instant Brands Directors Win Narrow Bankruptcy Liability Shields

Independent directors appointed by the former maker of the Instant Pot ahead of its bankruptcy can receive a type of narrow liability release despite objections from the Justice Department’s bankruptcy watchdog, a Houston judge ruled.

The directors appointed by Instant Brands were disinterested fiduciaries who were allowed the same protections as bankruptcy trustees for conduct that falls within their duties, absent gross negligence or willful misconduct, Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas said Monday.

The company, which also made Corelle and Pyrex products, had its Chapter 11 reorganization plan approved in February ...