You are here

In re Mullins (Case No. 09-70595) 06/22/2010

On the debtor’s third amended disclosure statement, third amended plan of reorganization, motion to confirm the plan notwithstanding ballot cramdown, the Court denied confirmation of the amended plan.  The burden of proof to establish that a Chapter 11 plan satisfies the statutory requirements for confirmation falls on the plan’s proponent.  The absolute priority rule generally prohibits any junior class of interests from receiving or retaining any interest if any senior impaired class does not accept the plan.  See 11 U.S.C. § 1129(b).  Since the debtor in this case proposed to retain his home, a rental property, and non-exempt personal property while only paying unsecured creditors 12%, the Court found that his proposal was unreasonable and denied confirmation of his Chapter 11 plan.

Date: 
Tuesday, June 22, 2010
Category: 
Absolute Priority Rule
Chapter 11 Issues
Confirmation of Plan
Chapter: 
11