Incentive Insider

A. Not A Class Led by the Fourth Circuit,[1]a number of courts have rejected the idea that a secured tax claim should have the ability to vote on a reorganization plan.

I. The State of the CourtsDuring a Chapter Eleven reorganization, if the proposed plan of reorganization is not accepted by all classes, the court is justified in confirming the plan, if at least one impaired class without any insiders accepts the plan.

Introduction“[I]t is unsettled whether a secured tax claim may be classified for purposes of voting and cram down.”[1]The status of a secured tax claim, whether it is as a class with voting rights or not, has large implications for those determining how to classify creditors during a reorganization plan.

The paper I am posting next was a term paper for my introductory bankruptcy class. I am currently spinning this paper into a longer more detailed paper, but my professor’s initial feedback and my own research suggests that much of the content will change, or at least shift focus significantly.