You Say “Per Debtor”, I Say “Per Plan”

The Bankruptcy Code provides that a bankruptcy court can confirm a plan can only if at least one impaired class of non-insider creditors votes to accept the plan (If any class of creditors under the plan is impaired). In cases involving multiple debtors that are not substantively consolidated, courts are divided over the question of whether an impaired class of each debtor must accept the plan (the per debtor approach) or whether the acceptance of the joint plan by an impaired class of a single debtor, or fewer than all of the debtors, is sufficient (the per plan approach). Be sure to read this article discussing a recent bankruptcy court decision addressing the per debtor / per plan issue.

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