The Effects Of Ch. 11 Plan Confirmation

Law360, New York (September 11, 2013, 1:53 PM EDT) -- Although confirmation of a Chapter 11 plan is the goal of nearly every Chapter 11 case, the case does not end upon confirmation. Rather, after the plan is confirmed, the transactions contemplated by the plan must be consummated, which is often referred to as the “effective date” of the plan.

On the effective date, the financing, sale or other transactions contemplated by the plan close. The plan then becomes a binding document and all parties must obey its terms, all property of the estate vests in...
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