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In Jevic, the Supreme Court held that the Bankruptcy Code does not allow bankruptcy courts to approve distributions to creditors in a structured dismissal of a Chapter 11 case that violates the Bankruptcy Code's ordinary priority rules without the consent of creditors. Check out this expertly drafted article discussing a Second Circuit decision addressing whether, under Jevic, a settlement can be approved that distributes value to unsecured creditors without first paying disputed secured claims.
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