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§ 1126(e)

Affordable Auto Repair, Inc., In re

Ruling
Motion for the approval of Chapter 11 disclosure statement was granted with all rightsreserved to the United States Trustee and any interested party to take appropriate action.(Bankr. C.D. Cal.)
Issue(s)
Acceptance of Plan; Lack of Good Faith.

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Commercial opinion summary, case decided on September 02, 2020 , LexisNexis #1020-067

Fagerdala USA-Lompoc, Inc., In re--Pac. W. Bank v. Fagerdala USA-Lompoc, Inc.

Ruling
Bankruptcy court erred when it refused to analyze whether the secured creditor acted under an ulterior motive beyond its mere enlightened self-interest in protecting its secured claim. (9th Cir.)
Issue(s)
Acceptance of Plan; Lack of Good Faith.

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Judge or Jurisdiction information not available
Commercial opinion summary, case decided on June 04, 2018 , LexisNexis #0718-056

In re Sandia Resorts, Inc.

Ruling
Agreement between secured creditor plan proponent and unsecured creditor whose supportthe proponent sought was not grounds for rejection of the unsecured creditor’s vote. (Bankr.D.N.M.)
Issue(s)
Acceptance of Plan; Lack of Good Faith.

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Commercial opinion summary, case decided on November 04, 2016 , LexisNexis #1216-024

In re Monticello Realty Invs. LLC

Ruling
Ballots of bank that acted in good faith in opposing plan confirmation could not be disqualified from tabulation.
Issue(s)
Could ballots of creditor bank be discounted from final tally in confirmation vote due to alleged bad faith in opposing confirmation?

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Commercial opinion summary, case decided on March 06, 2015 , LexisNexis #0615-027

In re LichtinWade LLC

Ruling
Creditor's vote against debtor's plan could not be disallowed absent evidence of alleged bad faith.
Procedural posture

Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code and operated its business renting commercial real estate as a debtor-in-possession. A secured creditor filed an objection to a chapter 11 bankruptcy plan the debtor proposed, and the debtor filed a motion which asked the court to disallow all votes the creditor cast against the debtor's plan, pursuant to 11 U.S.C.S. § 1126(e). The court held a hearing on the debtor's motion.

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Commercial opinion summary, case decided on December 17, 2012 , LexisNexis #0113-029

In re Charles St. African Methodist Episcopal Church of Boston

Ruling
Motion to designate votes by secured creditor against plan and disregard objections denied.
Procedural posture

A chapter 11 debtor filed a motion under 11 U.S.C.S. § 1126(e) to designate the votes cast by a secured creditor against the debtor's plan of reorganization and, by virtue of the designation, to disregard the objections to confirmation of the plan.

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Commercial opinion summary, case decided on September 11, 2012 , LexisNexis #1012-061

In re BataaKierland LLC

Ruling
Motion to designate impaired creditor's acceptance of plan for bad faith denied.
Procedural posture

Movant secured creditor, a lender, sought to "designate," that is, to disqualify another secured creditor's acceptance of the plan of reorganization, pursuant to 11 U.S.C.S. § 1126(e), alleging that the acceptance was not made in good faith. Debtor owned a single real estate asset. The creditor's apparent motive in approving the plan under 11 U.S.C.S. § 1129(a)(10), was to see the debtor succeed in its reorganization.

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Commercial opinion summary, case decided on September 04, 2012 , LexisNexis #1012-095

In re DBSD N. Am. Inc.

Ruling
Votes of creditor that purchased debtor's first lien debt in order to acquire primary asset designated and disqualified.
Procedural posture

The debtors, a development-stage enterprise formed to develop an integrated mobile satellite and terrestrial services network, moved, pursuant to 11 U.S.C.S. § 1126(e), to designate and disqualify the votes of a competing creditor, which had just purchased and was the sole holder of debt in the first lien debt class. The creditor's votes rejected the debtors' reorganization plan before the court for confirmation.

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Commercial opinion summary, case decided on December 21, 2009 , LexisNexis #0210-064

In re Adelphia Communs. Corp.

Ruling
Court refused to designate creditors'votes for confirmation on grounds of bad faith absent highly egregious conduct.
Procedural posture

The bondholders filed a motion to designate, for bad faith, the votes in the class of senior notes of the three targeted creditors that voted to support the chapter 11 plan for confirmation. The targeted creditors and creditors committee opposed the motion on the ground that there was no basis for disqualifying the votes.

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opinion summary, case decided on December 11, 2006 , LexisNexis #0107-027