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§ 1129(b)

In re OCA Inc.

Dec
29
2006
Ruling
Plan confirmation denied as grant of participation rights to junior class of equity holders without paying unsecured creditors in full violated absolute priority rule.
Procedural posture

Bankruptcy debtors sought confirmation of a plan of reorganization by non- consensual cramdown pursuant to 11 U.S.C. § 1129(b), but a creditor, the former principal of the primary debtor, objected to plan confirmation on the grounds that the plan undervalued the debtors and contravened the absolute priority rule.

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opinion summary, case decided on December 29, 2006 , LexisNexis #0207-007
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In re Armstrong World Indus.

Aug
14
2006
Ruling
Plan did not discriminate against unsecured creditors in favor of asbestos personal injury claimants.
Procedural posture

Debtors, a company and its subsidiaries, filed a fourth amended plan of reorganization, as modified. The sole objection to the plan was asserted by the unsecured creditors'committee ("UCC"), which claimed that the plan unfairly discriminated against the unsecured creditors in favor of the asbestos personal injury claimants. Thus, the UCC argued, the plan did not comply with section 1129(b) of the Bankruptcy Code, 11 U.S.C. § 1129(b).

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opinion summary, case decided on August 14, 2006 , LexisNexis #0906-096
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Official Comm. of Unsecured Creditors v. Dow Chem. Corp. (In re Dow Corning Corp.)

Jul
26
2006
Ruling
Decision was reversed since bankruptcy court misinterpreted plan in violation of section 1129(b) and should have enforced creditor's contractual rights.
Procedural posture

Appellants/cross appellees, bankruptcy creditors, of appellee/cross- appellant debtor corporation argued that the District Court for the Eastern District of Michigan improperly affirmed the bankruptcy court's allowance of claims for post-petition interest at the non- default contract rate rather than at the contracts'default rate.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on July 26, 2006 , LexisNexis #0806-066
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In re Carolina Tobacco Co.

Feb
01
2006
Ruling
Debtor's third amended plan was confirmed provided that the debtor made required modifications to account for the debtor's prepetition obligation to make escrow deposits.
Procedural posture

Debtor's third amended chapter 11 plan for reorganization was currently before the court for confirmation after negotiations between debtor and objector states failed to reach a settlement. The objections concerned debtor's obligation to pay escrow deposits to the states pursuant to a master settlement agreement for tobacco litigation.

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opinion summary, case decided on February 01, 2006 , LexisNexis #0406-025
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In re Armstrong World Indus.

Dec
29
2005
Ruling
Debtor corporation was denied confirmation of its chapter 11 reorganization plan because the plan's distribution of warrants to equity interest holders over the objection of a class of unsecured creditors violated the absolute priority rule.
Procedural posture

Appellant debtor corporation and two of its subsidiaries filed a chapter 11 petition for bankruptcy. An unsecured creditors committee filed objections to the bankruptcy court's proposed findings and conclusions with the district court. The district court denied confirmation of the bankruptcy reorganization plan. The debtor corporation appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on December 29, 2005 , LexisNexis #0106-125
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