11 U.S.C. § 1129 : US Code - Section 1129: Confirmation of plan

Search 11 U.S.C. § 1129 : US Code - Section 1129: Confirmation of plan

      (a) The court shall confirm a plan only if all of the following
    requirements are met:
        (1) The plan complies with the applicable provisions of this
      title.
        (2) The proponent of the plan complies with the applicable
      provisions of this title.
        (3) The plan has been proposed in good faith and not by any
      means forbidden by law.
        (4) Any payment made or to be made by the proponent, by the
      debtor, or by a person issuing securities or acquiring property
      under the plan, for services or for costs and expenses in or in
      connection with the case, or in connection with the plan and
      incident to the case, has been approved by, or is subject to the
      approval of, the court as reasonable.
        (5)(A)(i) The proponent of the plan has disclosed the identity
      and affiliations of any individual proposed to serve, after
      confirmation of the plan, as a director, officer, or voting
      trustee of the debtor, an affiliate of the debtor participating
      in a joint plan with the debtor, or a successor to the debtor
      under the plan; and
        (ii) the appointment to, or continuance in, such office of such
      individual, is consistent with the interests of creditors and
      equity security holders and with public policy; and
        (B) the proponent of the plan has disclosed the identity of any
      insider that will be employed or retained by the reorganized
      debtor, and the nature of any compensation for such insider.
        (6) Any governmental regulatory commission with jurisdiction,
      after confirmation of the plan, over the rates of the debtor has
      approved any rate change provided for in the plan, or such rate
      change is expressly conditioned on such approval.
        (7) With respect to each impaired class of claims or interests -
       
          (A) each holder of a claim or interest of such class - 
            (i) has accepted the plan; or
            (ii) will receive or retain under the plan on account of
          such claim or interest property of a value, as of the
          effective date of the plan, that is not less than the amount
          that such holder would so receive or retain if the debtor
          were liquidated under chapter 7 of this title on such date;
          or

          (B) if section 1111(b)(2) of this title applies to the claims
        of such class, each holder of a claim of such class will
        receive or retain under the plan on account of such claim
        property of a value, as of the effective date of the plan, that
        is not less than the value of such holder's interest in the
        estate's interest in the property that secures such claims.

        (8) With respect to each class of claims or interests - 
          (A) such class has accepted the plan; or
          (B) such class is not impaired under the plan.

        (9) Except to the extent that the holder of a particular claim
      has agreed to a different treatment of such claim, the plan
      provides that - 
          (A) with respect to a claim of a kind specified in section
        507(a)(2) or 507(a)(3) of this title, on the effective date of
        the plan, the holder of such claim will receive on account of
        such claim cash equal to the allowed amount of such claim;
          (B) with respect to a class of claims of a kind specified in
        section 507(a)(1), 507(a)(4), 507(a)(5), 507(a)(6), or
        507(a)(7) of this title, each holder of a claim of such class
        will receive - 
            (i) if such class has accepted the plan, deferred cash
          payments of a value, as of the effective date of the plan,
          equal to the allowed amount of such claim; or
            (ii) if such class has not accepted the plan, cash on the
          effective date of the plan equal to the allowed amount of
          such claim;

          (C) with respect to a claim of a kind specified in section
        507(a)(8) of this title, the holder of such claim will receive
        on account of such claim regular installment payments in cash -
        
            (i) of a total value, as of the effective date of the plan,
          equal to the allowed amount of such claim;
            (ii) over a period ending not later than 5 years after the
          date of the order for relief under section 301, 302, or 303;
          and
            (iii) in a manner not less favorable than the most favored
          nonpriority unsecured claim provided for by the plan (other
          than cash payments made to a class of creditors under section
          1122(b)); and

          (D) with respect to a secured claim which would otherwise
        meet the description of an unsecured claim of a governmental
        unit under section 507(a)(8), but for the secured status of
        that claim, the holder of that claim will receive on account of
        that claim, cash payments, in the same manner and over the same
        period, as prescribed in subparagraph (C).

        (10) If a class of claims is impaired under the plan, at least
      one class of claims that is impaired under the plan has accepted
      the plan, determined without including any acceptance of the plan
      by any insider.
        (11) Confirmation of the plan is not likely to be followed by
      the liquidation, or the need for further financial
      reorganization, of the debtor or any successor to the debtor
      under the plan, unless such liquidation or reorganization is
      proposed in the plan.
        (12) All fees payable under section 1930 of title 28, as
      determined by the court at the hearing on confirmation of the
      plan, have been paid or the plan provides for the payment of all
      such fees on the effective date of the plan.
        (13) The plan provides for the continuation after its effective
      date of payment of all retiree benefits, as that term is defined
      in section 1114 of this title, at the level established pursuant
      to subsection (e)(1)(B) or (g) of section 1114 of this title, at
      any time prior to confirmation of the plan, for the duration of
      the period the debtor has obligated itself to provide such
      benefits.
        (14) If the debtor is required by a judicial or administrative
      order, or by statute, to pay a domestic support obligation, the
      debtor has paid all amounts payable under such order or such
      statute for such obligation that first become payable after the
      date of the filing of the petition.
        (15) In a case in which the debtor is an individual and in
      which the holder of an allowed unsecured claim objects to the
      confirmation of the plan - 
          (A) the value, as of the effective date of the plan, of the
        property to be distributed under the plan on account of such
        claim is not less than the amount of such claim; or
          (B) the value of the property to be distributed under the
        plan is not less than the projected disposable income of the
        debtor (as defined in section 1325(b)(2)) to be received during
        the 5-year period beginning on the date that the first payment
        is due under the plan, or during the period for which the plan
        provides payments, whichever is longer.

        (16) All transfers of property under the plan shall be made in
      accordance with any applicable provisions of nonbankruptcy law
      that govern the transfer of property by a corporation or trust
      that is not a moneyed, business, or commercial corporation or
      trust.

      (b)(1) Notwithstanding section 510(a) of this title, if all of
    the applicable requirements of subsection (a) of this section other
    than paragraph (8) are met with respect to a plan, the court, on
    request of the proponent of the plan, shall confirm the plan
    notwithstanding the requirements of such paragraph if the plan does
    not discriminate unfairly, and is fair and equitable, with respect
    to each class of claims or interests that is impaired under, and
    has not accepted, the plan.
      (2) For the purpose of this subsection, the condition that a plan
    be fair and equitable with respect to a class includes the
    following requirements:
        (A) With respect to a class of secured claims, the plan
      provides - 
          (i)(I) that the holders of such claims retain the liens
        securing such claims, whether the property subject to such
        liens is retained by the debtor or transferred to another
        entity, to the extent of the allowed amount of such claims; and
          (II) that each holder of a claim of such class receive on
        account of such claim deferred cash payments totaling at least
        the allowed amount of such claim, of a value, as of the
        effective date of the plan, of at least the value of such
        holder's interest in the estate's interest in such property;
          (ii) for the sale, subject to section 363(k) of this title,
        of any property that is subject to the liens securing such
        claims, free and clear of such liens, with such liens to attach
        to the proceeds of such sale, and the treatment of such liens
        on proceeds under clause (i) or (iii) of this subparagraph; or
          (iii) for the realization by such holders of the indubitable
        equivalent of such claims.

        (B) With respect to a class of unsecured claims - 
          (i) the plan provides that each holder of a claim of such
        class receive or retain on account of such claim property of a
        value, as of the effective date of the plan, equal to the
        allowed amount of such claim; or
          (ii) the holder of any claim or interest that is junior to
        the claims of such class will not receive or retain under the
        plan on account of such junior claim or interest any property,
        except that in a case in which the debtor is an individual, the
        debtor may retain property included in the estate under section
        1115, subject to the requirements of subsection (a)(14) of this
        section.

        (C) With respect to a class of interests - 
          (i) the plan provides that each holder of an interest of such
        class receive or retain on account of such interest property of
        a value, as of the effective date of the plan, equal to the
        greatest of the allowed amount of any fixed liquidation
        preference to which such holder is entitled, any fixed
        redemption price to which such holder is entitled, or the value
        of such interest; or
          (ii) the holder of any interest that is junior to the
        interests of such class will not receive or retain under the
        plan on account of such junior interest any property.

      (c) Notwithstanding subsections (a) and (b) of this section and
    except as provided in section 1127(b) of this title, the court may
    confirm only one plan, unless the order of confirmation in the case
    has been revoked under section 1144 of this title. If the
    requirements of subsections (a) and (b) of this section are met
    with respect to more than one plan, the court shall consider the
    preferences of creditors and equity security holders in determining
    which plan to confirm.
      (d) Notwithstanding any other provision of this section, on
    request of a party in interest that is a governmental unit, the
    court may not confirm a plan if the principal purpose of the plan
    is the avoidance of taxes or the avoidance of the application of
    section 5 of the Securities Act of 1933. In any hearing under this
    subsection, the governmental unit has the burden of proof on the
    issue of avoidance.
      (e) In a small business case, the court shall confirm a plan that
    complies with the applicable provisions of this title and that is
    filed in accordance with section 1121(e) not later than 45 days
    after the plan is filed unless the time for confirmation is
    extended in accordance with section 1121(e)(3).