Not cars, mind you, but Detroit's Chapter 9 plan of adjustment.
Go here to read Reuters report.
For the first time in a Chapter 9 case (at least to the awareness of everyone at Widener Law Journal's symposium on Municipal Financial Distress), a bankruptcy judge has appointed an expert to report on whether a plan of adjustment is "feasible." Feasibility is one of the requirements for confirmation but has historically been given short shrift by courts.
I argued in my presentation that taxpayers should be given standing as parties-in-interest to contest whether a plan is feasible but Judge Rhodes has already decided to go the "expert" route instead.
Vigorous contests of all the Chapter 9 confirmation requirements by parties is still, I believe the better approach but I am heartened to see that feasibility will get the consideration it deserves. And, if the plan isn't feasible, dismissal, or at least its threat, awaits.
Go here to read Reuters report.
For the first time in a Chapter 9 case (at least to the awareness of everyone at Widener Law Journal's symposium on Municipal Financial Distress), a bankruptcy judge has appointed an expert to report on whether a plan of adjustment is "feasible." Feasibility is one of the requirements for confirmation but has historically been given short shrift by courts.
I argued in my presentation that taxpayers should be given standing as parties-in-interest to contest whether a plan is feasible but Judge Rhodes has already decided to go the "expert" route instead.
Vigorous contests of all the Chapter 9 confirmation requirements by parties is still, I believe the better approach but I am heartened to see that feasibility will get the consideration it deserves. And, if the plan isn't feasible, dismissal, or at least its threat, awaits.
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