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In re Cooper Coal (Case No. 09-70520) 7/7/2009

Chapter 11 debtor has the burden of establishing that section 1129(a)(7)(A)(ii) is satsfied before plan can be confirmed. Even though Chapter 11 plan had been accepted by over 80% of unsecured creditors, the debtor must still show that the distributions to general unsecured creditors are at least as much as such creditors would receive in a chapter 7 liquidation. Plan also did not unambiguously state that the debtor did not qualify for a discharge if the provisions of section 1141(d)(3) were applicable.  United States Trustee's objection to confirmation sustained.

Date: 
Tuesday, July 7, 2009
Category: 
Burden of Proof
Chapter 11 Issues
Confirmation of Plan
Unsecured Creditor
Chapter: 
11