The following Restructuring & Insolvency practice note Produced in partnership with Julie Lanz of Skadden Arps Slate Meagher & Flom LLP provides comprehensive and up to date legal information covering:
A chapter 11 debtor’s confirmed plan of reorganisation sets out the payments or distributions, if any, that will be made to creditors on account of their pre-petition claims and to equity holders. In order for a plan to be confirmable, payments and distributions must be made in accordance with the priorities set forth in the US Bankruptcy Code. In general, the US Bankruptcy Code establishes the following distribution priorities among various classes of claims and interests (listed in descending order of priority):
domestic support obligations
administrative expense claims
priority unsecured claims
non-priority unsecured claims
subordinated debt claims
equity interests and related rescission and damages claims
Only holders of claims that are allowed (ie recognised as valid) under the US Bankruptcy Code may participate in any distributions (11 U.S.C. §§ 502(a)).To be confirmable, a plan must provide that holders of secured claims will receive distributions equal to the value of their collateral and holders of administrative expense claims and priority claims be paid in full, unless the holders agree to a different treatment (11 U.S.C. §§ 1129(b)(2)(A), 1129(a)(9).
With respect to a class of creditors that has not accepted a chapter 11 plan, the ‘absolute priority rule’ set out in US Bankruptcy Code, s 1129(b) provides that any class of creditors or equity holders junior to such non-accepting class
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Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. The key implications for civil appeals are set
This Practice Note considers claims for damages for breach of statutory duty. For guidance on claims for damages for a negligent breach of duty of care outside a statutory duty, see Practice Notes:•Negligence—when does a duty of care arise?•Negligence—when is the duty of care breached?Breach of
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There are several offences of tipping-off and prejudicing an investigation that apply to the regulated sector. There is also an offence of prejudicing an investigation that applies only to the unregulated sector. Both sectors are subject to an additional offence of interfering with documents.This
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