Plan Confirmation

Ninth Circuit Describes the Pleading and Proof for Converting from ‘11’ to ‘7’

With the statute silent, the Ninth Circuit makes rules for assets that go to the chapter 7 estate on conversion from chapter 11.

Plan Amendment Barred When Just a Few Claims Had Been Paid After Confirmation

Substantial consummation under Section 1193(b) was defined by the bankruptcy court to mean commencement of distributions to some but not all creditor classes.

Supreme Court Won’t Rule on Remedies for Overpayments and Violation of Rule 3002.1

The Supreme Court on June 13 declined to hear two bankruptcy cases in the term to begin next October.

Published Notice Doesn’t Result in Discharge of Some Types of Lease Claims

Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.

Recent Confirmation Developments

Severing Third-Party Releases: A Path Forward After Patterson

In an opinion issued on January 13, 2022, Judge David Novak of the United States District Court for the Eastern District of Virginia struck down non-consensual third-party releases [2] from a plan confirmed by the bankruptcy court.

Post-Petition, Pre-Solicitation Plan-Support Covenants: Potential Tools for Mitigating a Free-Fall Filing

In bankruptcy, a debtor-in-possession’s chief goal is to get its plan of reorganization confirmed by the bankruptcy court. [1] Among other things, the Bankruptcy Code requires that at least one class of impaired creditors vote to accept the plan — i.e., that at least two-thirds in amount and one-half in number of the allowed claims in such class accept the plan.

The Cost of Resolving Mass Tort Claims Through Bankruptcy

Seeking relief under the Bankruptcy Code is a common method of restructuring a business pushed into insolvency by tort claims. Under current law, filing a petition under chapter 11 of the Bankruptcy Code allows a business to stay all litigation against it and propose a plan of reorganization that channels tort claims to a settlement trust for valuation and payment. Many plans provide for the funding of the settlement trust through the proceeds of a debtor’s insurance policies and contributions from the debtor and third parties.

Liquidating Substantially All Assets in a Subchapter V Chapter 11: A Recent Case Study

Since going effective on Feb. 19, 2020, much has been written regarding the restructuring benefits of a chapter 11, subchapter V case. Prior to its implementation, many small businesses were, from a practical standpoint, unable to benefit from chapter 11 due to the expense of filing and prosecuting a traditional chapter 11 case. The introduction of subchapter V has shifted that, thus giving smaller businesses a streamlined process to recognize the benefits of a chapter 11 restructuring.

2018 Increase in U.S. Trustee Fees Held Unconstitutional by the Supreme Court

The Supreme Court’s unanimous opinion avoids saying whether the dual system of U.S. Trustees and Bankruptcy Administrators is itself unconstitutional.