Provisions of a plan of reorganization (or liquidation) relieving a party, usually an officer or director of the debtor, a member of a committee, or professionals employed by a debtor or committee, from liability for actions taken or omissions made in good faith solely in connection with a bankruptcy case. Generally, these provisions do not limit the exculpated parties’ liability for gross negligence, willful misconduct, or breach of fiduciary duty. Not to be confused with a third party release.
See also Third Party Release.