Beyond Gifting: Harmonizing the Devolution of Reorganization Plan Gifts and the Evolution of Sale Gifts

Authors

Reuben E. Dizengoff, Benjamin N. Cardozo School of Law

Abstract

The ntoe critiques the rigidity of the Absolute Priority Rule (APR) under Chapter 11 of the Bankruptcy Code, arguing that its strict application hinders effective restructuring. It proposes Section 363 sales as a viable alternative to achieve Chapter 11 goals, particularly when plan confirmation is unattainable due to senior creditor objections. The analysis highlights how Section 363 sales can legally redirect assets to junior stakeholders, offering a workaround to APR limitations. The note concludes that harmonizing gifting in reorganization plans with Section 363 sales could provide a balanced approach to bankruptcy restructuring.

Disciplines

Banking and Finance Law | Bankruptcy Law | Business Organizations Law | Law

Recommended Citation

Reuben E. Dizengoff, Beyond Gifting: Harmonizing the Devolution of Reorganization Plan Gifts and the Evolution of Sale Gifts, 39 Cardozo L. Rev. 787 (2017).
Available at: https://larc.cardozo.yu.edu/clr/vol39/iss2/14