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Reorganization Plan

Dealing with Distress for Fun & Profit— Installment #18—How to Confirm a Chapter 11 Plan

A written tour of business bankruptcy and its alternatives. This is the latest in the series, Dealing with Distress for Fun & Profit, which you can read from the beginning if you like.  In this bat-installment, we turn to what is, theoretically, one of the most important parts of any chapter 11 case: confirming a […]


A Primer on the Chief Restructuring Officer (CRO)

A Brief History of the Chief Restructuring Officer The role of a Chief Restructuring Officer (“CRO”) is approximately four decades old.  While still a somewhat new role in the 1990s, CROs are now ubiquitous in the restructuring community.  Todd Zywicki, a George Mason law professor who specializes in bankruptcy law, traces the origin of the […]


The “Absolute Priority Rule” and Other “Rules” of “Priority” in Bankruptcy

Are They Really “Absolute,” Are They Really “Rules,” and Do They Always Provide “Priority” to Some Claimants Over Others? At its core, corporate bankruptcy addresses the problem of the “inadequate pie.”  While occasionally the debtor will be solvent, in most cases, the debtor will, for lack of a better term, be “bankrupt”—that is, it won’t have […]


Netflix Barred by Bankruptcy Plan of Relativity From Streaming Films Before Their Release

Relativity Debtors are the “Masterminds” while Netflix sits in “The Disappointment Room” Faced with debts exceeding $1 billion and lacking liquidity, but hopeful that certain assets would bear bountiful fruit in due course, Relativity Fashion, LLC and a host of affiliates (collectively “Relativity”) filed chapter 11 cases in July 2015 in the United States Bankruptcy Court […]


Dealing With Distress For Fun & Profit – Installment #7 – Plan Confirmation

A written tour of business bankruptcy and its alternatives Our last installment focused on what we called the “mundane” middle of a chapter 11 case. You can read it here. This time we discuss something a bit more exciting: confirmation. Summary Chronology Here is the basic chronology leading up to confirming a plan, for those of […]


Do’s and Don’ts of Gifting in Bankruptcy: When a Court Will Look a Gift Horse in the Mouth  

The gifting doctrine in bankruptcy is not new and often is used to obtain creditor consensus to a debtor’s proposed exit – either through a chapter 11 plan or a 363 sale. A bankruptcy “gift” typically involves a structurally senior class voluntarily giving some of its property or distribution to a structurally junior class of […]


Showdown in Spokane: The Spokane Country Club Bankruptcy Case

The bankruptcy case of the Spokane Country Club (“SCC” the “Club” or the “Debtor”) is a very interesting study of how the bankruptcy process has not only been used to disrupt the collection efforts of plaintiff creditors who have already been awarded a judgment, but also to essentially negate significant policy changes for a club that had been stipulated […]


ABI Commission Report on Chapter 11 Reforms—More Hope in Sight for the Little Guy?

Among a number of issues addressed by an American Bankruptcy Institute Commission tasked with making recommendations to the federal legislature regarding bankruptcy law was a subject that has been on the minds of many bankruptcy professionals over the last few years. It is also certainly a subject that has been on the minds of countless […]


KUNEY’S CORNER – To Cheat Perdition Under the Debtor’s Plan: The Secured Creditor’s Section 1111(b) Election

A recent article by this author on this site presented the debtor’s cram down powers, to be employed in confirming a plan over the opposition of impaired creditors.[i] That article referred briefly to an undersecured secured creditor’s counter-measure: the section 1111(b)(2) election. By making this election, a secured creditor chooses to do without (i.e. “plucks […]


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