10th Circ. Widens Split On APR In Individual Ch. 11
February 27, 2013, 1:07 PM EST
Law360, New York (February 27, 2013, 1:07 PM EST) -- The relevance of the absolute priority rule (APR) in individual Chapter 11 cases is an important plan confirmation issue where creditors are attempting to enforce individual guarantees, advance alter ego theories of recovery, or otherwise enforce individual liabilities. Although a split of authority has developed in recent years, the Tenth Circuit recently issued its ruling on the applicability of the APR in individual Chapter 11 cases.
By the Tenth Circuit’s tally, the Bankruptcy Appellate Panel (BAP) for the Ninth Circuit and five bankruptcy courts have held...