Selling an Insider’s Claim and Buying Plan Confirmation

In the first decision addressing the point, the Ninth Circuit held that there’s a difference between an insider and a claim held by an insider. The ruling blessed an insider’s sale of a claim, relieving the claim of any taint and allowing the new holder to vote on confirmation. The panel looks at the developing issues on whether the buyer is a nonstatutory insider and whether the plan can be pursued in good faith after such a sale.