The Fifth Circuit Court of Appeals recently determined the issue of whether a chapter 11 plan that artificially impairs a class of creditors for purposes of complying with section 1129(a)(10) of the Bankruptcy Code is confirmable. See Western Real Estate Equities, L.L.C. v. Village at Camp Bowie I, L.P. (In re Village at Camp Bowie I), No. […]
Read MoreOn May 29, 2012, the U.S. Supreme Court decided the well-monitored appeal in RadLAX Gateway Hotel, LLC, et al. v. Amalgamated Bank, where a chapter 11 debtor appealed the ruling of Seventh Circuit Court of Appeals that a debtor may not confirm a cramdown plan, proposing to sell encumbered assets free and clear of liens, without permitting the […]
Read MoreValuation Generally The valuation of assets plays a central role in most business bankruptcies. Among other things, a proponent of a chapter 11 plan must establish an accurate value of the debtor’s business, as such valuation is often tied to distributions to creditors, who are voting to approve the plan. Valuation is also important in determining the amount of a secured […]
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