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§ 1129(b)

In re Majaraj

Ruling
Debtors could not cram down subordinate deed of trust as absolute priority rule continued to operate in individual chapter 11 cases with regard to non-exempt property owned on petition date.
Procedural posture

Debtors, who operated an auto body business, sought confirmation of a chapter 11 plan. Confirmation was opposed by a nominally secured creditor ("NSC"), whose subordinate deed of trust against the debtors' residence would have been stripped off. Additionally, the plan had not been accepted by the class of general unsecured creditors, who would have received an estimated 1.7 cents on the dollar over a period of five years.

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Consumer opinion summary, case decided on May 09, 2011 , LexisNexis #0611-098

In re Riddle

Ruling
Plan confirmed despite rejection by bank where value of land exceeded bank's secured debt.
Procedural posture

Debtor filed a petition under chapter 11 and proposed a reorganization plan. A bank that held a security interest in real property the debtor owned voted to reject the debtor's plan and opposed The court held a hearing to determine if the plan could be confirmed under 11 U.S.C.S. § 1129(b), notwithstanding the bank's failure to accept it.

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Consumer opinion summary, case decided on February 08, 2011 , LexisNexis #0411-028

Dish Network Corp. v. DSD N. Am. Inc. (In re DBSD N. Am.)

Ruling
Creditor that was an indirect competitor of the debtor and bought a blocking position in a class of claims in order to obtain the debtor's telecommunications spectrum rights could be treated as acting in bad faith.
Procedural posture

In a Chapter 11 case, the bankruptcy court confirmed a reorganization plan for appellee debtor over the objections of appellant creditors. The United States District Court for the Southern District of New York affirmed. The creditors appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on February 07, 2011 , LexisNexis #0211-130

In re Mace

Ruling
Plan proposing 20-year loan repayment period did not discriminate against creditor.
Procedural posture

A creditor objected to confirmation of the second amended plan proposed by a Chapter 11 trustee on the ground that the plan unfairly discriminated against the creditor and that the plan was not fair and equitable as required by 11 U.S.C.S. § 1129(b)(2)(A).

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Consumer opinion summary, case decided on January 25, 2011 , LexisNexis #0211-129

In re American Media Inc.

Ruling
Chapter 11 plan was confirmable despite rejection and deemed rejection by two classes of creditors.
Procedural posture

Debtors-in-possession, publishers of newspapers and magazines, moved for a confirmation order, to effectuate confirmation of their amended joint prepackaged plan of reorganization under chapter 11, and to approve the adequacy of their disclosure statement, solicitation of votes, and the forms of ballots and the election.

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Commercial opinion summary, case decided on December 20, 2010 , LexisNexis #0211-029

In re Lighthouse Lodge LLC

Ruling
Creditor's plan providing for sale of debtor's lodge approved provided improper release provision was removed.
Procedural posture

Both the chapter 11 debtor and a moving creditor proposed amended plans of reorganization, each of which was modified in a minor way prior to trial. The amendments were not substantive and did not require re-voting.

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Commercial opinion summary, case decided on December 14, 2010 , LexisNexis #0111-096

In re Gelin

Ruling
Individual chapter 11 debtors could not cram down without consent of mortgage creditors or payment in full due to continued operation of absolute priority rule.
Procedural posture

Before the court was debtors' cram down motion pursuant to 11 U.S.C.S. § 1129(b), as well as debtors' Second Plan of Reorganization. Other related motions were also before the court seeking to cram down the Plan on other non-objecting creditor classes. A creditor objected to confirmation based on the absolute priority rule.

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Consumer opinion summary, case decided on September 29, 2010 , LexisNexis #1010-126

In re Shat

Ruling
The absolute priority rule does not apply to individual chapter 11 debtors post-BAPCPA.
Procedural posture

Debtors' chapter 11 plan was before the court for confirmation.

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Consumer opinion summary, case decided on February 22, 2010 , LexisNexis #0510-063

In re 2712 Mission Partners LP

Ruling
Confirmation of debtor's fourth amended plan and creditors' plan denied and stay continued conditioned on sale of office property.
Procedural posture

Debtor, a limited partnership that owned an office building, filed a chapter 11 petition. The debtor filed a disclosure statement that included its fourth attempt at a reorganization plan. A creditor also filed a disclosure statement and secured creditors filed a joint motion for relief from stay.

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Commercial opinion summary, case decided on January 22, 2010 , LexisNexis #0410-059

In re Blake

Ruling
Plan confirmed over creditor's objection to using confirmation date as date of valuation for cramdown.
Procedural posture

Bankruptcy debtors proposed a plan which provided that mortgage creditors would receive monthly payments having a present value of the fair market value of the debtors' rental properties on the date of confirmation. The creditors objected to confirmation of the debtors' plan on the ground that the proper date of valuation was the date the debtors commenced their bankruptcy case.

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Consumer opinion summary, case decided on November 30, 2009 , LexisNexis #1209-133