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New Cases For the Week of March 5, 2007 - March 9, 2007
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March 6, 2007 |
Case |
Court |
Holding |
In re Iridium Operating LLC
(DBN Subscription Required) |
2nd Cir. |
In the Chapter 11 context, whether a pre-plan settlement's distribution plan complies with the Bankruptcy Code's priority scheme is the most important factor for a bankruptcy court to consider in approving a settlement under Bankruptcy Rule 9019. That factor is "vital," and in most cases "dispositive." Where a lender's liens are contested, SPM does not apply, and "gifting" involves different considerations. The case is remanded for further consideration by the Bankruptcy Court as to why, if at all, deviation form the absolute priority rule is warranted. |
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