Recession Not 'Extraordinary' Enough For Revising Ch. 11

Law360, New York (April 2, 2013, 11:41 AM EDT) -- Affirming the bankruptcy court below in a case of first impression, in In re Caviata Attached Homes LLC, 481 B.R. 34 (B.A.P. 9th Cir. 2012), a Ninth Circuit bankruptcy appellate panel held that a relapse into economic recession following a Chapter 11 debtor’s emergence from bankruptcy was not an “extraordinary circumstance” that would justify the filing of a new Chapter 11 case for the purpose of modifying the debtor’s previously confirmed plan of reorganization.

Modification of a Confirmed Chapter 11 Plan

Section 1141(a) of the Bankruptcy...
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