U.S. Chamber Backs Container Store’s Opt-Out Releases at the Fifth Circuit

The U.S. Chamber of Commerce filed an amicus brief on September 25, 2026, urging the Fifth Circuit to uphold The Container Store’s use of opt-out consent for releasing non-debtor parties in its Chapter 11 plan.

Why it matters: Check your class’s recovery before ignoring a release ballot; zero-recovery classes can’t be bound by silence alone.

What the Container Store Ruling Says About Silent Consent

The Southern District of Texas ruled in February 2026 that a creditor’s silence can count as consent to a non-debtor release, but only under specific conditions.

• Judge Lee H. Rosenthal’s opinion holds that federal law, not state contract law, governs whether silence constitutes consent to a release in The Container Store’s Chapter 11 plan.
• Classes 5 and 8, which stood to recover nothing under the plan, cannot be bound by an opt-out mechanism and must affirmatively opt in to any release.
• The ruling applies the Supreme Court’s 2024 decision in Harrington v. Purdue Pharma, which barred forced non-debtor releases but left the definition of consent to lower courts.

Why the U.S. Chamber Is Defending Container Store’s Releases at the Fifth Circuit

The Chamber’s brief tells the Fifth Circuit the Trustee’s challenge threatens prepackaged plans everywhere, not just this one.

• The U.S. Chamber, represented by Jones Day attorneys C. Kevin Marshall and Daniel Paul Johnson, calls the Trustee’s position off-base and value destructive, warning it would undermine prepackaged Chapter 11 plans and mass tort settlements nationwide.
• The U.S. Trustee and the SEC are pressing the appeal in Case No. 26-20166 after objecting to the release provisions throughout the bankruptcy and district court proceedings.
• The Container Store’s prepackaged plan kept trade vendors and suppliers unimpaired and paid in full while term loan lenders took equity in the reorganized company.

What to do now

Suppliers holding a claim against a debtor that proposes non-debtor releases should read every opt-out ballot before the bar date, starting with a look at Chapter 11 recovery options for creditors.

1. Confirm your claim’s projected recovery percentage under the proposed plan before deciding whether to ignore an opt-out release ballot.
2. Contact Securitas Global Risk Solutions to check whether a proposed non-debtor release could cut off subrogation rights under your trade credit insurance policy.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.