Plan Confirmation

Another Fifth Circuit Humdinger: This Time, Limiting Gatekeeping

Picking up where Serta Simmons left off, the Fifth Circuit nixes another creative chapter 11 plan.

Opt-Out Plan Confirmed with Impaired Creditors Almost Unanimous in Support

In the Spirit Airlines reorganization, no creditors with an economic interest had opposed confirmation of a plan with opt-out releases for nondebtors.

District Court Doesn’t Say Whether ‘Person Aggrieved’ Survived Truck Insurance

District court upholds an ‘opt-out’ chapter 11 plan with releases for nondebtors.

Bankruptcy Judge Rejects a District Court’s Narrow View of Sales Free and Clear

New York’s Judge Philip Bentley interpreted Section 363(f)(5) to permit a sale free and clear whenever a creditor could conduct a foreclosure or a UCC sale.

Texaco’s 1988 Confirmation Didn’t Kill Environmental Suits Decades Later

New York’s Bankruptcy Judge David Jones reopened Texaco’s 1988 bankruptcy to ensure that state courts wouldn’t mistakenly decide that environmental claims were discharged

Purdue Doesn’t Preclude Injunctions from Protecting Nondebtors for the Life of a Plan

New York’s Judge John Mastando saw no reason a Subchapter V plan couldn’t enjoin lawsuits against nondebtors for the life of a five-year plan.

April 2025

Getting to Consent: Plan Classification, Voting and Negotiating Strategies Under Subchapter V Review considerations for designing your classes of claims under a plan when you seek to have all impaired classes accepting the plan. Dealing with government creditor claimants (not inclined to vote). Dealing with other "national" creditors on small cases (where creditor counsel may not be involved). Strategies for encouraging voting and/or dealmaking. Understanding impairment (and when votes are not required). What is a "prompt" cure for purposes of impairment. Risks of artificial impairment. Getting to consent. A review of all of the creative chips that can be traded back-and-forth between creditors and debtor's counsel to negotiate consensual plan. Business David Cox david@coxlawgroup.com Cox Law Group, PLLC

No Second Restructuring of the Same Debt in a Different Venue

Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.

Barton Halted Third Parties from Suing in an Allegedly Better Forum

When third parties sued a trust created by a confirmed chapter 11 plan, Judge Garrity declined to invent any new exceptions to the Barton doctrine.