While Chapter 11 is generally known as the reorganization chapter of the Bankruptcy Code, more recently, it has been used as a vehicle to manage the orderly liquidation of business entities through plans of liquidation.
Does the 'Best Interests' Test Protect the Tardy?
While Chapter 11 is generally known as the reorganization chapter of the Bankruptcy Code, more recently, it has been used as a vehicle to manage the orderly liquidation of business entities through plans of liquidation. Whether such liquidations follow sales of a debtor's assets under ' 363 or monetization of assets of a debtor over time, the liquidating plan often provides for payments to the creditor body that generally follow the priority of distribution set forth in ' 726.
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