Skinner Ch. 11 Must Convert To Ch. 7, 3rd Circ. Confirms

Law360, New York (July 25, 2012, 3:48 PM EDT) -- The Third Circuit on Wednesday upheld a bankruptcy court's order converting defunct Skinner Engine Co.'s Chapter 11 bankruptcy to a Chapter 7 without first holding a confirmation hearing because its plan, under which Skinner's insurers would fund numerous asbestos settlements, is clearly unworkable.

A bankruptcy court can make the determination to reject a Chapter 11 plan and move onto Chapter 7 without a confirmation hearing when a plan is "patently unconfirmable" on its face and can't be fixed, the appellate court confirmed, upholding the decision of...
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