Disenfranchising Creditors: Designating Votes on Chapter 11 Plans | Practical Law

Disenfranchising Creditors: Designating Votes on Chapter 11 Plans | Practical Law

A Practice Note describing the remedy of vote designation, including how courts determine whether a voting creditor or a party soliciting or procuring its vote is acting in bad faith or in pursuit of an improper ulterior motive. Examples of conduct both justifying and not justifying vote designation are discussed, as well as practical implications for creditors to consider when voting their pre-existing or acquired claims on a Chapter 11 plan of reorganization.

Disenfranchising Creditors: Designating Votes on Chapter 11 Plans

Practical Law Practice Note 9-505-4074 (Approx. 17 pages)

Disenfranchising Creditors: Designating Votes on Chapter 11 Plans

by Practical Law Bankruptcy & Restructuring and Practical Law Finance
MaintainedUSA (National/Federal)
A Practice Note describing the remedy of vote designation, including how courts determine whether a voting creditor or a party soliciting or procuring its vote is acting in bad faith or in pursuit of an improper ulterior motive. Examples of conduct both justifying and not justifying vote designation are discussed, as well as practical implications for creditors to consider when voting their pre-existing or acquired claims on a Chapter 11 plan of reorganization.