Warning: Creating default object from empty value in /home2/estatep6/public_html/bknevada.com/plugins/system/cdnforjoomla/helper.php on line 27
§ 1101. Definitions for this chapter

Las Vegas & Henderson Brankruptcy Attorneys

Call (702) 518-5180

Las Vegas & Henderson Bankruptcy Lawyers

FREE CASE REVIEW!

§ 1101. Definitions for this chapter

§1101. Definitions for this chapter

Code

In this chapter—

(1) “debtor in possession” means debtor except when a person that has qualified under section 322 of this title is serving as trustee in the case;

(2) “substantial consummation” means—

(A) transfer of all or substantially all of the property proposed by the plan to be transferred;

(B) assumption by the debtor or by the successor to the debtor under the plan of the business or of the management of all or substantially all of the property dealt with by the plan; and

(C) commencement of distribution under the plan.

Notes

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2626.)

Historical and Revision Notes

senate report no. 95–989

This section contains definitions of three terms that are used in chapter 11. Paragraph (1) defines debtor in possession to mean the debtor, except when a trustee who has qualified in serving in the case.

Paragraph (2), derived from section 229a of current law [section 629(a) of former title 11], defines substantial consummation. Substantial consummation of a plan occurs when transfer of all or substantially all of the property proposed by the plan to be transferred is actually transferred; when the debtor (or its successor) has assumed the business of the debtor or the management of all or substantially all of the property dealt with by the plan; and when distribution under the plan has commenced.

Paragraph (3) defines for purposes of Chapter 11 a public company to mean “a debtor who, within 12 months prior to the filing of a petition for relief under this chapter, had outstanding liabilities of $5 million or more, exclusive of liabilities for goods, services, or taxes and not less than 1,000 security holders.” There are, as noted, special safeguards for public investors related to the reorganization of a public company, as so defined.

Both requirements must be met: liabilities, excluding tax obligations and trade liabilities, must be $5 million or more; and (2) the number of holders of securities, debt or equity, or both, must be not less than 1,000. The amount and number are to be determined as of any time within 12 months prior to the filing of the petition for reorganization.

Address

Law Office of Richards & Associates, LLC
1489 West Warm Springs Road, Suite 110
Henderson, NV 89014
(702) 518-5180

Request a FREE consultation

Call (702) 518-5180, or fill out this form and we will contact you, generally by the end of the next business day.
Please be aware that submitting this form does not create an attorney/client relationship. Therefore, any information you submit through this website does not constitute confidential attorney/client communication.