|
ACCEPTANCE OF THE PLAN
Any creditor or equity security holder
whose claim or interest has been allowed may accept or reject a
Chapter 11 plan by a signed writing identifying the plan and
conforming to the appropriate Official Form. [B.C. §1126(a);
Bankruptcy Rule 3018(c)] If the acceptance or rejection occurs
before the commencement of the case, it is valid only if it was
solicited in accordance with the Code's requirements for
pre-petition solicitation (above) and if the plan was sent to
substantially all creditors and equity security holders of the same
class within a reasonable lime to accept or reject the plan. Also,
if the claim was based on a security of record, the creditor or
equity security holder must have been the holder of record on the
date specified in the solicitation.
a. Classes of claims: Acceptance of a plan by a class of claims
requires acceptance by creditors holding at least two-thirds in
number of the allowed claims actually being voted
b. Classes of Interests: Acceptance of a plan by a class of
interests requires acceptance by equity security holders having at
least two-thirds in amount of the allowed interests actually being
voted.
c. Bad faith votes: The court, after notice and a hearing, may
discount any acceptance or rejection not made in good faith or that
was not solicited in good faith or in compliance with the provisions
of the Code. Votes disqualified because claims acquired in bad
faith for stated purpose of taking over debtor, which would require
blocking confirmation of debtor's reorganization plan
d. Unimpaired classes: If a particular class is not impaired under a
plan, there is a conclusive presumption that the plan has been
accepted by the class and by the holder of each claim or interest in
the class
e. Classes receiving no property: A class that receives or
retains no property under a plan is deemed to have rejected the
plan.
7. Modifying a Plan: Prior to confirmation, a plan may be
modified only by its proponent. After confirmation and before
substantial consummation of a plan, it may be modified, if
warranted, by the proponent or by the reorganized debtor. Any
modification must satisfy the statutory requirements concerning
classification of claims or interests, contents of the plan , and
disclosure. An acceptance or a rejection of a plan before-
modification will be deemed to apply to the plan as modified unless
the vote is changed within the deadline set by the court.
Click here for
Post equity interests.
|
