To Facilitate Reorganization, Bankruptcy Court May Enjoin Nonconsenting Creditors' Claims Against Nondebtors

Lemons, Robert J.
April 2002
Venulex Legal Summaries;2002 Q2, p1
The article highlights the ruling issued by the U.S. Court of Appeals for the Sixth Circuit in a case involving Class Five Nevada Claimants and Dow Corning Corp. The court claims that a bankruptcy court has the ability to enjoin the claims of non-consenting creditors against non-debtors to facilitate a chapter 11 plan of reorganization. Under the Bankruptcy Code, chapter 11 plan of reorganization should be accepted by prescribed majorities of claimholders in order to be confirmed by a bankruptcy court.


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