Supreme Court Urged to Reject Review of Bankruptcy Guardrails

The US Supreme Court was asked to reject an appeal from Highland Capital Management LP surrounding a bankruptcy court’s authority to screen lawsuits and shield certain restructuring professionals from liability.

The justices lack authority to review Highland’s Chapter 11 plan exculpations—which are limited releases that reduce liability for key bankruptcy professionals—and should decline to consider “gatekeeper” lawsuit protections because they’re unripe, NexPoint Advisors LP and NexPoint Asset Management LP said in an opposition brief filed Wednesday.

Highland asked the Supreme Court in July to take up its appeal, framing it as an opportunity for the justices to clarify the extent ...