- 11 U.S.C.
In re Valencia Flour Mill Ltd.
Aug
22
2006
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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Court
:
- 11 U.S.C.
In re Trans Max Techs. Inc.
Aug
15
2006
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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Court
:
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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Court
:
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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In re JRV Indus. Inc.
Apr
24
2006
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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Court
:
- 11 U.S.C.
In re D & G Invs. of W. Fla. Inc.
Mar
31
2006
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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Court
:
- 11 U.S.C.
In re Chapin Revenue Cycle Mgmt. LLC
Mar
07
2006
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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Court
:
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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Court
:
In re Proud Mary Marina Corp.
Jan
19
2006
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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Court
:
- 11 U.S.C.
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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