In In re Gol Linhas Aéreas Inteligentes S.A. Judge Martin Glenn recently held that a “lockup” provision in certain settlement agreements was unenforceable under section 1125 of the Bankruptcy Code because settling creditors were provided insufficient information regarding plan treatment and there was no “out” for settling creditors to terminate the lockup. It is common practice in sophisticated chapter 11 bankruptcy proceedings to enter into what may be referred to as a “restructuring support agreement” (or “RSA”), “plan support agreement” (or “PSA”), or “lockup agreement,” whereby creditors agree to vote in favor of and support a chapter 11 plan of reorganization. Generally, an RSA includes key details of a chapter 11 plan or deal structure prior to the bankruptcy filing or a solicitation of votes on a chapter 11 plan and is accompanied by disclosure of relevant plan related information. In contrast, while a PSA or lockup agreement similarly binds creditors to vote in a particular way, it can be included as an ancillary provision to a settlement of specified disputes. This article was written by Goodwin’s Debora Hoehne, partner in the Financial Restructuring Group; Michael H. Goldstein, Chair in the Financial Restructuring practice; and Kimberly Pageau, associate in the Financial Restructuring group and published in The Journal of Bankruptcy Law.