Chapter 11 bankruptcy, known as “reorganization bankruptcy,” is a critical process for preserving a debtor’s business value. This blog explores the life cycle of a Chapter 11 case, emphasizing the importance for creditors and other stakeholders to understand the stages and their potential impact on financial interests. Part II of this series delves into the middle and final stages, including plan confirmation and post-plan administration.

Stage 4: Plan Confirmation
The debtor has the exclusive right to propose a Chapter 11 plan, which outlines the resolution of pre-bankruptcy liabilities and treatments for stakeholders. Accompanied by a disclosure statement, the plan requires court approval and creditor votes. Stakeholders must review these documents carefully to assess their impact and ensure compliance with Bankruptcy Code requirements.

Stage 5: Post-Confirmation Administration
Post-confirmation involves implementing the confirmed plan, whether reorganization or liquidation. This phase includes claim reconciliation, asset distribution, and potential adversary proceedings. Stakeholders must remain vigilant, monitoring the case for any developments affecting their interests and acting promptly to protect their rights. Read full article here.