Complicating Reorganization Of Multiple-Debtor Cases

Law360, New York (December 13, 2011, 2:21 PM EST) -- On Oct. 31, 2011, Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware issued an opinion in the Chicago Tribune[1] bankruptcy case that raises a significant hurdle to the confirmation of a joint Chapter 11 plan of reorganization covering multiple debtors. The opinion addresses an issue that has never before been squarely decided.

Section 1129(a)(10) of the Bankruptcy Code requires that a Chapter 11 plan of reorganization be accepted by at least one impaired class of creditors. The issue presented in the...
To view the full article, register now.