Before you REGURGITATE from "Dumb-Ass" Neo-Con journalists
by
Qtec90
11/02/2009, 3:22 PM #
TRY READING THE LAWS regarding CHAPTER 11, .....DUMB-FUCK!!!
PROOF POSITIVE you can't read & understand "English".... (AND you are a under informed "Dumb-FUCK"!!!..... Again!!!)
The Chapter 11 plan
Chapter 11 is reorganization, as opposed to liquidation. Debtors may
"emerge" from a Chapter 11 bankruptcy within a few months or within
several years, depending on the size and complexity of the bankruptcy.
The Bankruptcy Code accomplishes this objective through the use of a
bankruptcy plan. With some exceptions, the plan may be proposed by any
party in interest.[3]
Interested creditors then vote for a plan. Upon its confirmation, the
plan becomes binding and identifies the treatment of debts and
operations of the business for the duration of the plan.
Debtors in Chapter 11 have the exclusive right to propose a plan of
reorganization for a period of time (in most cases 120 days). After
that time has elapsed, creditors may also propose plans. Plans must
satisfy a number of criteria in order to be "confirmed" by the
bankruptcy court. Among other things, creditors must vote to approve
the plan of reorganization. If a plan cannot be confirmed, the court
may either convert the case to a liquidation under Chapter 7, or, if in
the best interests of the creditors and the estate, the case may be
dismissed resulting in a return to the status quo before bankruptcy. If
the case is dismissed, creditors will look to non-bankruptcy law in
order to satisfy their claims.
Automatic stay
As with other forms of bankruptcy, petitions filed under Chapter 11 invoke the automatic stay
of § 362. The automatic stay requires all creditors to cease collection
attempts, and makes post-petition debt collection void. Under some
circumstances, creditors or the United States Trustee
can ask the court to convert the case to a liquidation under Chapter 7,
or to appoint a trustee to manage the debtor's business. The court will
grant a motion to convert to Chapter 7 or appoint a trustee if either
of these actions is in the best interest of all creditors. Sometimes a
company will liquidate under Chapter 11, in which the pre-existing
management may be able to help get a higher price for divisions or
other assets than a Chapter 7 liquidation would be likely to achieve.
Appointment of a trustee requires some wrongdoing or gross mismanagement on the part of existing management and is relatively rare.
Executory contracts
Some contracts, known as executory contracts, may be rejected if
canceling them would be financially favorable to the company and its
creditors. Such contracts may include labor union contracts, supply or
operating contracts (with both vendors and customers), and real estate
leases. The standard feature of executory contracts is that each party
to the contract has duties remaining under the contract. In the event
of a rejection, the remaining parties to the contract become unsecured
creditors of the debtor.
Priority
Chapter 11 follows the same priority scheme as other bankruptcy
chapters. The priority structure is defined primarily by § 507 of the
Bankruptcy Code (11 U.S.C. § 507.)
As a general rule secured creditors—creditors who have a security interest, or collateral,
in the debtor's property—will be paid before unsecured creditors.
Unsecured creditors' claims are prioritized by § 507. For instance the
claims of suppliers of products or employees of a company may be paid
before other unsecured creditors are paid. Each priority level must be
paid in full before the next lowest priority level may receive payment.
Section 1110
Section 1110 (11 U.S.C. § 1110)
generally provides a secured party with an interest in an aircraft the
ability to take possession of the equipment within 60 days after a
bankruptcy filing unless the airline cures all defaults. More
specifically, the right of the lender to take possession of the secured
equipment is not hampered by the automatic stay provisions of the U.S.
Bankruptcy Code.
