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(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
Subtitle D—Amendments to Chapter 11 of
Title 11
CHAPTER 1—AMENDMENTS TO EXISTING LAW
SEC. 341. CREDITORS’ AND EQUITY SECURITY HOLDERS’
COMMITTEES.
Section 1102 of title 11, United States Code, is
amended in paragraph (a)(1) by inserting at the end ‘‘:
Provided, however, That only creditors holding claims that
are not guaranteed obligations under a cross-guarantee or
stop-loss contract and are not direct guarantors may be
appointed to such committee in a case under subchapter
V of chapter 11’’.
SEC. 342. WHO MAY FILE A PLAN.
Section 1121 of title 11, United States Code, is
amended by adding new subsection (f):
‘‘(f) Notwithstanding subsection (c) of this section,
a guaranteed creditor may not file a plan in a case under
subchapter V of chapter 11.’’.
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SEC. 343. IMPAIRMENT OF CLAIMS OR INTERESTS.
Section 1124 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Notwithstanding subsection (a) of this section,
the claim of a guaranteed creditor is deemed to be
unimpaired in a case under subchapter V of chapter 11.’’.
SEC. 344. ACCEPTANCE OF PLAN.
Section 1126 of title 11, United States Code, is
amended in subsection (a) by inserting at the end of the
first sentence:’’, ‘‘provided, however, that a guaranteed
creditor is not entitled to accept or reject a plan in a case
under subchapter V of chapter 11’’.
SEC. 345. CONFIRMATION HEARING.
Section 1128 of title 11, United States Code, is
amended in subsection (b) by inserting after ‘‘A party in
interest’’:’’, ‘‘other than a guaranteed creditor in a case
under subchapter V of chapter 11,’’.
SEC. 346. CONFIRMATION OF PLAN.
Section 1129 of title 11, United States Code, is
amended—
(a) in paragraph (a)(4), by inserting at the
end:’’, ‘‘Provided, however, That no such approval of
any payment by a cross-guarantee or stop-loss syn-
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dicate is required when the cross-guarantee or stop-
loss syndicate is the proponent of the plan and the
payment is made pursuant to a cross-guarantee or
stop-loss contract’’; and
(b) by adding new subsection (e)—
‘‘(e) Notwithstanding subsections (a) and (b) of this
section, the court may confirm a plan that otherwise meets
the requirements of subsection (a) and (b) of this section
even though, in a case under subchapter V of chapter 11,
a guaranteed creditor receives or retains no property
under the plan.’’.
SEC. 347. EFFECT OF CONFIRMATION.
Section 1141 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘(d)(2) and
(d)(3)’’ and by inserting ‘‘(d)(2), (d)(3), (d)(4), and
(d)(5)’’;
(b) by inserting new paragraph (d)(4)—
‘‘(4) Except as provided in subsection 365(k) of
this title, the confirmation of a plan does not dis-
charge a guaranteed company that is a debtor under
subchapter V of chapter 11 of this title from any
debt arising out of a guaranteed obligation’’;
(c) by inserting new paragraph (d)(5)—
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‘‘(5) Except as provided in section 365(k) of
this title, the confirmation of a plan does not dis-
charge a debtor of its obligations and liabilities as
a direct guarantor under a cross-guarantee or stop-
loss contract’’; and
(d) by redesignating paragraph (d)(4) as (d)(6).
CHAPTER 2—ENACTMENT OF SUBCHAPTER V
SEC. 351. GUARANTEED COMPANY REORGANIZATION.
Title 11, United States Code, is amended by adding
a new subchapter V:
‘‘Subchapter V—Guaranteed Company
Reorganization’’.
SEC. 352. INAPPLICABILITY OF OTHER SECTIONS.
Title 11, United States Code, is amended by adding
new section 1181:
‘‘§ 1181. Inapplicability of other sections
‘‘Sections 341, 343, 1104, 1105, and 1107 do not
apply in a case under subchapter V of chapter 11.’’.
SEC. 353. EFFECTIVE DATE OF FILING.
Title 11, United States Code, is amended by adding
new section 1182:
‘‘§ 1182. Effective date of filing
‘‘The effective date and time of the filing of a petition
under this subchapter shall be the close of business on
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the business day preceding the date on which the petition
is actually filed.’’.
SEC. 354. APPOINTMENT OF TRUSTEE.
Title 11, United States Code, is amended by adding
new section 1183:
‘‘§ 1183. Appointment of trustee
‘‘As soon as practicable after the entry of an order
for relief, the regulation corporation shall submit to the
United States Trustee a list of five disinterested persons
who are qualified and willing to serve as the trustee in
the case. The United States Trustee shall appoint one
such person to serve as the trustee in the case. Neither
the syndicate agent monitoring the debtor as of the date
of the filing of the petition nor a governmental unit or
the employee of a governmental unit shall be eligible to
serve as the trustee.’’.
SEC. 355. LIABILITY OF DIRECT GUARANTORS FOR TRANS-
FERS TO GUARANTEED CREDITORS.
Title 11, United States Code, is amended by adding
new section 1184:
‘‘§ 1184. Liability of direct guarantors for transfers to
guaranteed creditors
‘‘The trustee may recover for the benefit of all guar-
anteed creditors from the direct guarantors of the debtor
the amount of any transfers of property of the estate to
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or for the benefit of guaranteed creditors that enable such
creditors to receive more than such creditors would receive
if the trustee was engaged in a liquidation pursuant to
section 1187 of this chapter and such transfers had not
been made.’’.
SEC. 356. REPLACEMENT OR MODIFICATION OF CROSS-
GUARANTEE CONTRACT.
Title 11, United States Code, is amended by adding
new section 1185:
‘‘§ 1185. Replacement or modification of cross-guaran-
tee contract
‘‘Prior to the debtor filing any application with the
regulation corporation for approval of any replacement
cross-guarantee contract or for the approval of any modi-
fication of the debtor’s existing cross-guarantee contract,
the debtor must obtain the approval of the court to enter
into such replacement contract or to modify such existing
contract.’’.
SEC. 357. EFFECT OF FEDERAL, STATE, AND LOCAL LEGIS-
LATION AND REGULATIONS.
Title 11, United States Code, is amended by adding
new section 1186:
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‘‘§ 1186. Effect of Federal, State, and local legislation
and regulations
‘‘(a) Except with respect to merger, modification of
the financial structure of the debtor, or the issuance or
sale of securities under a plan, the trustee and the debtor
are subject to all Federal, State, and local legislation, reg-
ulations and orders to the same extent as the debtor would
be if a petition commencing the case under this chapter
had not been filed.
‘‘(b) Notwithstanding subsection (a) of this section,
neither Federal receivership law, State receivership law,
nor any laws prohibiting the enforcement of an agreement
that is not contained in the records of a debtor under this
subchapter, including sections 212(a) and 217(4) of the
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1821(d)(9)(A) and 1823(e)),
shall be applicable.
‘‘(c) Notwithstanding any State or Federal law, de-
positors in a guaranteed company that is a debtor under
this subsection shall not receive any preference in distribu-
tion under this title over other creditors.’’.
SEC. 358. LIQUIDATION.
Title 11, United States Code, is amended by adding
new section 1187:
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‘‘§ 1187. Liquidation
‘‘On request of a party in interest and after notice
and a hearing, the court may order the trustee to cease
the debtor’s operation and to collect and reduce to money
all of the property of the estate in the same manner as
if the case were a case under chapter 7 of this title if
such liquidation is in the best interest of creditors.’’.
TITLE IV—AMENDMENT TO TITLE 28,
UNITED STATES CODE
SEC. 401. VENUE.
Title 28, United States Code, is amended by adding
new subsection 1409(f):
‘‘(f) A proceeding arising in or related to a case under
subchapter V of chapter 11 of title 11 regarding the debt-
or’s satisfaction of a guaranteed obligation, whether aris-
ing before or after the commencement of the case, may
be commenced in the district court for the district where
the State or Federal court sits in which the party com-
mencing such proceeding may, under applicable non-bank-
ruptcy venue provisions, have brought an action on such
claim, or in the district court in which such case is pend-
ing. The cross-guarantee syndicate which has entered into
a cross-guarantee contract in such a case shall be a party
in interest in any proceeding commenced under this sub-
section.’’.
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