Chapter 11 Plan Impairment and the Solvent-Debtor Exception

Your debtor client wants to discuss the terms of a plan of reorganization. You need to determine whether a Chapter 11 debtor is obligated to pay postpetition, pre-effective date interest to unsecured creditors to render their claims unimpaired under a Chapter 11 plan (in accordance with the pre-Bankruptcy Code common law solvent-debtor exception).

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Related Content

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  Review this practice note for the requirements for confirming a Chapter 11 plan.

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  Use this resource kit for Practical Guidance materials on confirming a Chapter 11 plan, including detailed practice notes, templates, and checklists.

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  See this practice note for a discussion of a lender's rights to postpetition interest and other payments in a bankruptcy case.

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  Check out this article on a recent Ninth Circuit decision addressing the solvent-debtor exception and the correct postpetition interest rate.

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