Common use of Acceptance by Impaired Classes Clause in Contracts

Acceptance by Impaired Classes. Bankruptcy Code Section 1129(a) requires that each class of claims or interests that is impaired under a plan accept the plan (subject to the "cramdown" exception contained in Bankruptcy Code Section 1129(b)). A class of claims under a plan accepts the plan if the plan is accepted by creditors that hold at least two-thirds in amount and more than one-half in number of the allowed claims in the class that actually vote on the plan. A class of interests accepts the plan if the plan is accepted by holders of interests that hold at least two-thirds in amount of the allowed interests in the class that actually vote on a plan. A class that is not "impaired" under a plan is conclusively presumed to have accepted the plan. Solicitation of acceptances from such a class is not required. A class is "impaired" unless (i) the legal, equitable and contractual rights to which a claim or interest in the class entitles the holder are not modified or (ii) the effect of any default is cured and the original terms of the obligation are reinstated. Under the Plan, Class 1 (Priority Claims), Class 3a (the Truck Secured Claim), Class 3b, (the Van Secured Claim) and Class 3c (the Crow Secured Claims) and Class 6 (General Unsecured Claims) are not impaired and are deemed to accept the Plan. All other Classes of Claims and Interests under the Plan are impaired under the Plan. The Debtor believes that all impaired Classes will vote to accept the Plan, and, therefore, the Plan will comply with this requirement for confirmation. Nonetheless, if an impaired Class votes to reject the Plan, the Debtor reserves its right to seek confirmation of the Plan pursuant to Bankruptcy Code Section 1129(b), and will provide an analysis of the Plan's compliance with the cramdown provisions in a memorandum of law in support of confirmation of the Plan.

Acceptance by Impaired Classes. The Bankruptcy Code Section 1129(a) requires requires, as a condition to confirmation, except as described in the following section, that each class of claims Claims or equity interests that is impaired under a plan plan, accept the plan (subject to the "cramdown" exception contained in Bankruptcy Code Section 1129(b))plan. A class of claims that is not “impaired” under a plan accepts is deemed to have accepted the plan if and, therefore, solicitation of acceptances with respect to such a class is not required.20 Section 1126(c) of the Bankruptcy Code defines acceptance of a plan is accepted by creditors that hold a class of impaired Claims as acceptance by Holders of at least two-thirds in dollar amount and more than one-half in a number of the allowed claims Allowed Claims in the class that class, counting only those Claims that have actually vote on voted to accept or to reject the plan. A Thus, a class of interests accepts Claims will have voted to accept the plan Plan only if the plan is accepted by holders of interests that hold at least two-thirds in amount and a majority in number of the allowed interests Allowed Claims in the such class that actually vote on a planthe Plan actually cast their ballots in favor of acceptance. 20 A class that of claims is not "“impaired" under a ” within the meaning of section 1124 of the Bankruptcy Code unless the plan is conclusively presumed to have accepted the plan. Solicitation of acceptances from such a class is not required. A class is "impaired" unless (ia) leaves unaltered the legal, equitable and contractual rights to which a the claim or equity interest in the class entitles the holder are not modified of such claim or equity interest or (iib) the effect of cures any default is cured and default, reinstates the original terms of such obligation, compensates the obligation are reinstatedholder for certain damages or losses, as applicable, and does not otherwise alter the legal, equitable, or contractual rights to which such claim or equity interest entitles the holder of such claim or equity interest. Under Section 1126(d) of the PlanBankruptcy Code defines acceptance of a plan by a class of impaired equity interests as acceptance by Holders of at least two-thirds in amount of Allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class 1 (Priority Claims), Class 3a (the Truck Secured Claim), Class 3b, (the Van Secured Claim) and Class 3c (the Crow Secured Claims) and Class 6 (General Unsecured Claims) are not impaired and are deemed of Interests will have voted to accept the PlanPlan only if two-thirds in amount of the Allowed Interests in such class that vote on the Plan actually cast their ballots in favor of acceptance. All other Classes If a Class contains Holders of Claims or Interests eligible to vote and no Holders of Claims or Interests under the Plan are impaired under the Plan. The Debtor believes that all impaired Classes will eligible to vote in such Class vote to accept the Plan, and, therefore, the Plan will comply with this requirement for confirmation. Nonetheless, if an impaired Class votes to or reject the Plan, the Debtor reserves its right to seek confirmation Plan shall be presumed accepted by the Holders of the Plan pursuant to Bankruptcy Code Section 1129(b), and will provide an analysis of the Plan's compliance with the cramdown provisions such Claims or Interests in a memorandum of law in support of confirmation of the Plansuch class.

Acceptance by Impaired Classes. The Bankruptcy Code Section 1129(a) requires requires, as a condition to confirmation, except as described in the following section, that each class of claims or equity interests that is impaired under a plan plan, accept the plan (subject to the "cramdown" exception contained in Bankruptcy Code Section 1129(b))plan. A class of claims that is not “impaired” under a plan accepts is deemed to have accepted the plan if and, therefore, solicitation of acceptances with respect to such a class is not required.8 Section 1126(c) of the Bankruptcy Code defines acceptance of a plan is accepted by creditors that hold a class of impaired claims as acceptance by holders of at least two-thirds in dollar amount and more than one-half in a number of allowed claims in that class, counting only those claims that have actually voted to accept or to reject the plan. Thus, a class of Claims will have voted to accept the Prepackaged Plan only if two-thirds in amount and a majority in number of the allowed claims Allowed Claims in the such class that actually vote on the planPrepackaged Plan actually cast their ballots in favor of acceptance. A Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests accepts the plan if the plan is accepted as acceptance by holders of interests that hold at least two-thirds in amount of the allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class of Interests will have voted to accept the Prepackaged Plan only if two-thirds in amount of the Allowed Interests in such class that actually vote on the Prepackaged Plan actually cast their ballots in favor of acceptance. Pursuant to Article III.E of the Prepackaged Plan, if a plan. A class that is not "impaired" under a plan is conclusively presumed Class contains Claims eligible to vote and no holders of Claims eligible to vote in such Class vote to accept or reject the Prepackaged Plan, the holders of such Claims in such Class shall be deemed to have accepted the plan. Solicitation of acceptances from such a class is not required. A class is "impaired" unless (i) the legal, equitable and contractual rights to which a claim or interest in the class entitles the holder are not modified or (ii) the effect of any default is cured and the original terms of the obligation are reinstated. Under the Plan, Class 1 (Priority Claims), Class 3a (the Truck Secured Claim), Class 3b, (the Van Secured Claim) and Class 3c (the Crow Secured Claims) and Class 6 (General Unsecured Claims) are not impaired and are deemed to accept the Plan. All other Classes of Claims and Interests under the Plan are impaired under the Plan. The Debtor believes that all impaired Classes will vote to accept the Plan, and, therefore, the Plan will comply with this requirement for confirmation. Nonetheless, if an impaired Class votes to reject the Plan, the Debtor reserves its right to seek confirmation of the Plan pursuant to Bankruptcy Code Section 1129(b), and will provide an analysis of the Plan's compliance with the cramdown provisions in a memorandum of law in support of confirmation of the Prepackaged Plan.

Acceptance by Impaired Classes. The Bankruptcy Code Section 1129(a) requires requires, as a condition to confirmation, except as described in the following section, that each class of claims or equity interests that is impaired under a plan plan, accept the plan (subject to the "cramdown" exception contained in Bankruptcy Code Section 1129(b))plan. A class of claims that is not “impaired” under a plan accepts is deemed to have accepted the plan if and, therefore, solicitation of acceptances with respect to such a class is not required. Section 1126(c) of the Bankruptcy Code defines acceptance of a plan is accepted by creditors that hold a class of impaired claims as acceptance by holders of at least two-thirds in dollar amount and more than one-half in a number of allowed claims in that class, counting only those claims that have actually voted to accept or to reject the plan. Thus, a class of Claims will have voted to accept the Plan only if two-thirds in amount and a majority in number of the allowed claims Allowed Claims in the such class that actually vote on the planPlan actually cast their ballots in favor of acceptance. A Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests accepts the plan if the plan is accepted as acceptance by holders of interests that hold at least two-thirds in amount of the allowed interests in the class that class, counting only those interests that have actually vote on a plan. A class that is not "impaired" under a plan is conclusively presumed voted to have accepted accept or to reject the plan. Solicitation Thus, a Class of acceptances from such a class is not required. A class is "impaired" unless (i) Interests will have voted to accept the legal, equitable and contractual rights to which a claim or interest Plan only if two-thirds in the class entitles the holder are not modified or (ii) the effect of any default is cured and the original terms amount of the obligation are reinstatedAllowed Interests in such class that vote on the Plan actually cast their ballots in favor of acceptance. Under Pursuant to Article III of the Plan, if a Class 1 (Priority Claims), Class 3a (the Truck Secured Claim), Class 3b, (the Van Secured Claim) contains Claims or Interests eligible to vote and Class 3c (the Crow Secured Claims) and Class 6 (General Unsecured Claims) are not impaired and are deemed to accept the Plan. All other Classes no Holders of Claims and or Interests under the Plan are impaired under the Plan. The Debtor believes that all impaired Classes will eligible to vote in such Class vote to accept the Plan, and, therefore, the Plan will comply with this requirement for confirmation. Nonetheless, if an impaired Class votes to or reject the Plan, the Debtor reserves its right Holders of such Claims or Interests in such Class shall be deemed to seek confirmation of the Plan pursuant to Bankruptcy Code Section 1129(b), and will provide an analysis of the Plan's compliance with the cramdown provisions in a memorandum of law in support of confirmation of have accepted the Plan.