Question
Jones has an allowed unsecured claim against Debtor for $8,000. Debtor's chapter 11plan places Jones in Class 3 (with all unsecured claims) and proposes to
Jones has an allowed unsecured claim against Debtor for $8,000. Debtor's chapter 11plan places Jones in Class 3 (with all unsecured claims) and proposes to pay 25 on the dollar to all Class 3 claims over 5 years (at 5% a year). Debtor's liquidation analysis shows that Class 3 claims would receive 19 on the $ in a liquidation. Jones votes against the plan after receiving disclosure documents. Class 3 votes in favor of the plan by a 3-1 margin. The court confirms Debtor's plan.
What happens to Jones' claim?
Following the same facts as above Jones has checked into the actual vote, and believes that the court erred in its count. The total number of claims in Class 3 is 200, and the total amount of claims in that class is $2 million. The votes that were actually cast were: 90 claims, worth $750,000, in favor; 60 claims, worth $250,000, against. Fifty claims, worth $1 million, did not vote.
Did Class 3 accept the plan?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started