UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
SPECIAL METALS CORPORATION
HUNTINGTON ALLOYS CORPORATION, f/k/a
INCO ALLOYS INTERNATIONAL INC. d/b/a CASE NOS. 02-10335-
HUNTINGTON ALLOYS, 02-10338
SPECIAL METALS DOMESTIC SALES CORP.
A-1 WIRE TECH, INC.
MEMORANDUM OPINION AND ORDER
This matter having come before the court on debtor’s Renewed Motion of Reorganized Debtors for Order Enforcing Discharge Injunction and Staying Actions of Ramona Hall (DOC 2408), and a hearing having been held on September 11, 2008, and the court having heard argument on the matter with the said Ramona Hall appearing, pro se, and the matter having been taken under submission, the court hereby issues this memorandum opinion and order.
The issue before the court is whether Ms. Hall can pursue claims discharged pursuant to a confirmed plan with an effective date of November 26, 2003, against the debtor.
"A discharge in a case under this title— operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor . . ." 11 U.S.C. § 524(a)(2). "Except as provided in subsection (a)(3) of this section, discharge of a debt of the debtor does not affect the liability of any other entity on, or the property of any other entity for, such debt." 11 U.S.C. § 524(e). Thus, pursuant to 11 U.S.C. § 524(e), Ms. Hall can pursue claims arising prior to the effective date of the plan against non-debtor third parties, but not against the debtor.
The bankruptcy court can, under certain circumstances, enjoin claims against non-debtors as part of confirmation of a plan of reorganization. See In re Dow Corning Corp., 280 F.3d 648,656 (6th Cir. 2002). However, the debtor here has made no argument that the confirmation of the plan in this matter enjoined actions against non-debtor entities in connection with the claims of Ms. Hall.
For the above reasons, the motion of the debtor is sustained to the extent that it seeks to enjoin any action against the debtor on the claims of Ms. Hall which arose prior to the effective date of the debtors’ confirmed plan of reorganization.
IT IS SO ORDERED.
Cheryl James, Esq.