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§ 1129

In re Valencia Flour Mill Ltd.

Ruling
Modification of plan denied due to change in classification of claim without creditor's consent and insufficient payments to a secured creditor.
Procedural posture

A corporate debtor submitted a modification to its plan of reorganization for confirmation, proposing to modify or limit the claims two secured creditors, one to an unsecured claim of less than $10,000 and the other to preclude liability of the individual co-debtors.

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opinion summary, case decided on August 22, 2006 , LexisNexis #1006-102

In re Trans Max Techs. Inc.

Ruling
Plan lacked feasibility due to reliance on debtor's implausible development of a flying car within three years.
Procedural posture

Debtor filed a voluntary petition for chapter 11 bankruptcy, and thereafter served as debtor in possession. Before the court was debtor's request for plan confirmation. The Office of the United States Trustee ("UST") objected, as did two creditor groups.

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opinion summary, case decided on August 15, 2006 , LexisNexis #0107-102

In re Armstrong World Indus.

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

Official Comm. of Unsecured Creditors v. Dow Chem. Corp. (In re Dow Corning Corp.)

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

In re JRV Indus. Inc.

Ruling
Court denied chapter 11 plan of reorganization since it did not have reasonable assurance of success from reorganization.
Procedural posture

Debtor filed an amended chapter 11 plan of reorganization. The court held a confirmation hearing.

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opinion summary, case decided on April 24, 2006 , LexisNexis #0706-139

In re D & G Invs. of W. Fla. Inc.

Ruling
Court denied confirmation of chapter 11 plan of reorganization with leave to amend to provide sufficient proof of feasibility.
Procedural posture

Before the court in a chapter 11 case were the matters of confirmation of debtor's plan of reorganization, objection by creditor to the plan, and debtor's motion for cramdown as to creditor.

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opinion summary, case decided on March 31, 2006 , LexisNexis #0706-138

In re Chapin Revenue Cycle Mgmt. LLC

Ruling
Court granted debtor's motion for cramdown and confirmed chapter 11 plan.
Procedural posture

Creditor objected to confirmation of the debtor's proposes chapter 11 plan on the basis that the requirements of 11 U.S.C. § 1129 (a)(11) and (b)(2)(A) were not met. The creditor argued that the plan was not feasible, and that the plan improperly treated the creditor's unaccepting secured claim. The debtor moved for a cramdown.

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opinion summary, case decided on March 07, 2006 , LexisNexis #0806-102

In re Carolina Tobacco Co.

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

In re Proud Mary Marina Corp.

Ruling
Purchaser of debtor's property's chapter 11 plan was confirmable while the debtor's plan was not confirmable since it failed good faith and feasibility requirements.
Procedural posture

Debtor, the operator of a mobile home park, and a proposed purchaser each presented a competing chapter 11 plan of reorganization. Debtor also moved for estimation of application for payment of the administrative expense claims of the proposed purchaser. The contestants disputed whether the plans satisfied the "good faith" requirement and the "feasibility" requirements set forth in 11 U.S.C. § 1129(a)(3) and (11).

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opinion summary, case decided on January 19, 2006 , LexisNexis #0306-065

In re Armstrong World Indus.

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