• Chris Kuhner

9th Circuit holds Court Must Investigate Motive Before Disallowing Votes for Bad Faith

The 9th Circuit Court of Appeals held in a published decision that, under 11U.S.C. §1126(e), a bankruptcy court may not designate claims for bad faith simply because (1) a creditor offers to purchase only a subset of available claims in order to block a plan of reorganization, and/or (2) blocking the plan will adversely impact the remaining creditors. The court held that, at a minimum, there must be some evidence that the creditor is seeking to secure some untoward advantage over other creditors for some ulterior motive.

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The Small Business Reorganization Act of 2019

On August 23, 2019 the Small Business Reorganization Act (“SBRA”) was signed into law. The SBRA becomes effective on February 19, 2020. The SBRA is found in Subchapter V of Chapter 11 of the Bankruptc