In an unpublished decision in In re The Village at Lakeridge, LLC, BAP Nos. NV-12-1456 and NV-12-1474 (B.A.P. 9th Cir. Apr. 5, 2013), the United States Bankruptcy Appellate Panel of the Ninth Circuit held that a vote on a plan of reorganization submitted by a non-insider claimant is not to be disregarded under Bankruptcy Code section 1129(a)(10) merely because the claimant purchased the claim from an insider. In other words, the transferee of a claim does not step into the shoes of the transferor vis à vis the transferor’s status as an insider.Continue Reading Claims Trading From The Inside Out: Ninth Circuit BAP Holds That A Non-Insider Claimant’s Vote On A Plan Is Not Discounted Merely Because The Claimant Purchased Its Claim From An Insider
Single Asset Real Estate Restructurings
Lenders Beware — Fifth Circuit has lowered the bar for cramdown plan confirmation
By Eugene Kim
In a recent Fifth Circuit decision, Western Real Estate Equities, LLC v. Village at Camp Bowie I, L.P., No. 12-10271 (5th Cir. 2013), the court held that the acceptance vote from a minimally and “artificially impaired” class of claims meets the 11 U.S.C. § 1129(a)(10) requirement for the confirmation of a non-consensual “cramdown” chapter 11 plan.Continue Reading Lenders Beware — Fifth Circuit has lowered the bar for cramdown plan confirmation
The Seventh Circuit Expands Scope of Absolute Priority Rule to Protect Creditors
“Absolute priority rule” “New value” “Insiders” “Castleton Plaza” “203 North LaSalle”…
Continue Reading The Seventh Circuit Expands Scope of Absolute Priority Rule to Protect Creditors