Topic
absolute priority rule
21 published works
Bankruptcy Report
Third Circuit Allows Debtors’ Funds Purchased in Section 363 Sale to Bypass IRS and be Distributed to Administrative and Unsecured Creditors
By Karen Chau
The Third Circuit has affirmed the Delaware Bankruptcy Court’s approval of a section 363 sale and related settlement agreement over IRS’s objection to provisions in the sale and settlement agreements…
Plan Proponent
ABI Commission Report – Absolute Priority Rule and Plan Gifting Provisions
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we'll cover the Commission's recommendations regarding "class-skipping" and…
Plan Proponent
ABI Commission Report – New Value Corollary
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). We wrapped-up "Redemption Option Value" in our last post and then had…
Plan Proponent
David Cassidy and the Absolute Priority Rule
Last Wednesday, David Cassidy, star of the 1970s “The Partridge Family,” filed an individual Chapter 11 bankruptcy petition in the Southern District of Florida. Perhaps it’s wishful thinking to wonder…
Bankruptcy Report
Absolute Priority Rule Prevents Cram Down in In re RAMZ Real Estate Co., LLC
By Dustin Smith
In a May 9, 2014 decision, Chief Judge Morris of the United States Bankruptcy Court for the Southern District of New York held that a Chapter 11 bankruptcy plan proposed…
Finance & Bankruptcy Law Blog
The Seventh Circuit Expands Scope of Absolute Priority Rule to Protect Creditors
"Absolute priority rule" "New value" "Insiders" "Castleton Plaza" "203 North LaSalle"
Crunched Credit
When Lenders are the Losers in Bankruptcy Court…Well, Not so Fast
Last October, I wrote about a scheme employed, in three separate bankruptcy cases, by debtors seeking to evade the absolute priority rule in order to keep the real property owned…
Bankruptcy Litigation Blog 2.0
Chief Judge Easterbrook Writes That Free Market Competition Trumps Equity’s Attempted Free Lunch Under the New Value Exception to the Absolute Priority Rule
A 7th Circuit opinion authored by Chief Judge Easterbrook last week had me again looking across the street at 203 North LaSalle and wondering whether the US Supreme Court will…
Bankruptcy Law Insights
Absolute Priority Rule Absolutism? Strict Interpretation of Bankruptcy Code Cramdown Provisions Nearly Causes Hawker Beechcraft Plan Confirmation to Skid Along the Runway
By Ben Feder
By nearly any measure, the Chapter 11 cases of Hawker Beechcraft and its affiliates (the “Debtors”) stand as a significant success. The cases began as a standalone reorganization predicated upon a…
Finance & Bankruptcy Law Blog
Second Circuit Holds That Most Important Factor In Assessing Pre-Plan Settlement Distribution Under Rule 9019 Is Whether It Complies With The Absolute Priority Rule
On March 7, 2007, the Second Circuit Court of Appeals held that "in the Chapter 11 context, whether a pre-plan settlement's distribution plan complies with the Bankruptcy Code's priority scheme…