Bankruptcy Reorganization: When the Debtor Defaults Under a Confirmed Plan and Other Post-Confirmation Issues

This CLE course will discuss what happens after confirmation and what happens when a debtor defaults under a plan of reorganization, whether confirmed under the regular provisions of Chapter 11 or new Subchapter V. The program will review the impact of confirmation on critical issues, the use of post-confirmation entities to implement the plan, the remedies available on default, and how creditors can and must be protected under the new provisions of Subchapter V.

To confirm a Chapter 11 plan, the business debtor must convince creditors that it can meet the obligations of the reorganization plan and that it isn't likely to liquidate or undergo further financial reorganization after confirmation. Despite the best forecasting, unforeseen events occur or the debtor may promise more than it can deliver.

When this happens, creditors need to understand what happens and the available options and the consequences of those options, as well as the bankruptcy court's post-confirmation jurisdiction.

The case might be converted to Chapter 7 or the plan could be modified. Special issues would arise under new Subchapter V if the plan was not consensual. The Subchapter V plan must contain some protection for impaired creditors if the debtor does not perform.

Listen as this experienced panel reviews the issues involved in implementing the plan and what happens when a debtor defaults under a reorganization plan, whether confirmed under the regular provisions of Chapter 11 or new Subchapter V.