5/30/2023 0 Comments Under the impression meaningBankruptcy Court for the Northern District of Illinois examined the obligation of a foreign representative in a chapter 15 case to inform the court promptly of changes in the status of the foreign debtor's bankruptcy case. In In re Ace Track Co., Ltd., 2023 WL 551963 (Bankr. įoreign Representative's Failure to Communicate with Bankruptcy Court Warrants Closure of Chapter 15 Case Supreme Court as well as dispositions of petitions seeking Court review. Īn update on the status of various cases recently decided by or pending before the U.S. It also held as a matter of first impression that the solvent-debtor exception requiring a solvent debtor to pay postpetition, pre-confirmation interest to unsecured creditors to render their claims unimpaired survived the enactment of the Bankruptcy Code. Court of Appeals for the Second Circuit ruled as a matter of first impression that a claim is "impaired" within the meaning of the Bankruptcy Code only when a chapter 11 plan, rather than the Bankruptcy Code, alters the creditor's legal, equitable, or contractual rights. Chapter 11 Plan Impairment and the Solvent-Debtor Exception Second Circuit Weighs In on Bankruptcy Code v. Applying this rule, the Eleventh Circuit reversed lower court rulings depriving a shareholder class of additional disclosure and the right to vote on plan modifications that stripped some, but not all, class members of the right under a previous plan to receive new equity in exchange for a capital contribution and exit financing. Court of Appeals for the Eleventh Circuit established a bright-line rule requiring that, if a proposed post-voting, pre-confirmation modification of a chapter 11 plan materially and adversely affects a class of creditors or shareholders compared to their treatment in a prior plan, the plan proponent must provide the affected class with an amended disclosure statement and another opportunity to vote on the plan as modified. 27, 2023), motion to stay mandate pending petition for cert., No. (In re America-CV Station Group Inc.), 56 F.4th 1302 (11th Cir. Įleventh Circuit Establishes Bright-Line Rule on Additional Disclosure and Re-Solicitation of Votes for Modified Chapter 11 Plan According to the court, chapter 15 recognition was unwarranted because the proceeding was more akin to a corporate governance and fraud remediation effort rather than a proceeding that considers the rights and objectives of a company's creditors in the context of a court-supervised insolvency, reorganization, or liquidation proceeding. Bankruptcy Court for the Southern District of New York denied a petition filed by the joint provisional liquidators for recognition of a "winding-up" proceeding commenced under Cayman Islands law for the purposes of investigating allegations that a Cayman company's board and/or officers caused or allowed an improper expenditure of more than $600 million of corporate funds and preventing further dissipation of the company's assets. In In re Global Cord Blood Corp., 2022 WL 17478530 (Bankr. Chapter 15 Recognition Limited to Foreign Insolvency, Liquidation, or Restructuring Proceedings
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