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Creditors Competitive Bidding Reorganizations

Winthrop & Weinstine, P.A.

Seventh Circuit Holds That Debtor Cannot Circumvent Bankruptcy's Absolute-Priority Rule

Unless creditors accept a debtor's plan of reorganization, bankruptcy law requires the plan to provide for the payment in full of creditors before owners of the debtor receive anything on account of their equity interest....more

BakerHostetler

Seventh Circuit Reaffirms Absolute-Priority Rule in In re Castleton Plaza, LP

BakerHostetler on

Can an equity investor who directs an insider to contribute "new value" to a debtor under a plan of reorganization, so as to retain his interest in the company, avoid an express market test for that new equity? The answer to...more

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