Common Contracts
1 similar Bankruptcy Agreement contracts
Page 127 TITLE 11—BANKRUPTCY § 521Bankruptcy Agreement • March 14th, 2024
be enforced, however, in a reorganization case in which the class that is the beneficiary of the agreement has accepted, as specified in proposed 11 U.S.C. 1126, a plan that waives their rights under the agreement. Other- wise, the agreement would prevent just what chapter 11 contemplates: that seniors may give up rights to jun- iors in the interest of confirmation of a plan and reha- bilitation of the debtor. The subsection also requires the court to subordinate in payment any claim for re- scission of a purchase or sale of a security of the debtor or of an affiliate, or for damages arising from the pur- chase or sale of such a security, to all claims and inter- ests that are senior to the claim or interest represented by the security. Thus, the later subordination varies with the claim or interest involved. If the security is a debt instrument, the damages or rescission claim will be granted the status of a general unsecured claim. If the security is an equity security, the damages o
