Source: https://www.law.cornell.edu/uscode/text/11/1127
Timestamp: 2018-04-25 02:43:16
Document Index: 178617439

Matched Legal Cases: ['§ 1127', '§ 1127', '§ 1127', '§\u202f511', '§\u202f321', '§\u202f2', '§\u202f511', '§\u202f511']

11 U.S. Code § 1127 - Modification of plan | US Law | LII / Legal Information Institute
U.S. Code › Title 11 › Chapter 11 › Subchapter II › § 1127
11 U.S. Code § 1127 - Modification of plan
Any holder of a claim or interest that has accepted or rejected a plan is deemed to have accepted or rejected, as the case may be, such plan as modified, unless, within the time fixed by the court, such holder changes such holder’s previous acceptance or rejection.
extend or reduce the time period for such payments; or
alter the amount of the distribution to a creditor whose claim is provided for by the plan to the extent necessary to take account of any payment of such claim made other than under the plan.
Sections 1121 through 1128 and the requirements of section 1129 apply to any modification under subsection (e).
The plan, as modified, shall become the plan only after there has been disclosure under section 1125 as the court may direct, notice and a hearing, and such modification is approved.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2635; Pub. L. 98–353, title III, § 511, July 10, 1984, 98 Stat. 386; Pub. L. 109–8, title III, § 321(e), Apr. 20, 2005, 119 Stat. 96; Pub. L. 111–327, § 2(a)(34), Dec. 22, 2010, 124 Stat. 3561.)
Section 1127(a) of the House amendment adopts a provision contained in the House bill permitting only the proponent of a plan to modify the plan and rejecting the alternative of open modification contained in the Senate amendment.
Under subsection (a) the proponent may file a proposal to modify a plan prior to confirmation. In the case of a public company the modifying proposal may be filed prior to approval.
Subsection (b) provides that a party in interest eligible to file a plan may file instead of a plan a proposal to modify a plan filed by another. Under subsection (c) a party in interest objecting to some feature of a plan may submit a proposal to modify the plan to meet the objection.
After a plan has been confirmed, but before its substantial consummation, a plan may be modified by leave of court, which subsection (d) provides shall be granted for good cause. Subsection (e) provides that a proposal to modify a plan is subject to the disclosure requirements of section 1125 and as provided in subsection (f). It provides that a creditor or stockholder who voted for or against a plan is deemed to have accepted or rejected the modifying proposal. But if the modification materially and adversely affects any of their interests, they must be afforded an opportunity to change their vote in accordance with the disclosure and solicitation requirements of section 1125.
Under subsection (g) a plan, if modified prior to confirmation, shall be confirmed if it meets the requirements of section 1130.
Subsection (a) permits the proponent of a plan to modify it at any time before confirmation, subject, of course, to the requirements of sections 1122 and 1123, governing classification and contents of a plan. After the proponent of a plan files a modification with the court, the plan as modified becomes the plan, and is to be treated the same as an original plan.
Subsection (b) permits modification of a plan after confirmation under certain circumstances. The modification must be proposed before substantial consummation of the plan. The requirements of sections 1122 and 1123 continue to apply. The plan as modified under this subsection becomes the plan only if the court confirms the plan as modified under section 1129 and the circumstances warrant the modification.
Subsection (c) requires the proponent of a modification to comply with the disclosure provisions of section 1125. Of course, if the modification were sufficiently minor, the court might determine that additional disclosure was not required under the circumstances.
Subsection (d) simplifies modification procedure by deeming any creditor or equity security holder that has already accepted or rejected the plan to have accepted or rejected the modification, unless, within the time fixed by the court, the creditor or equity security holder changes this previous acceptance or rejection.
2010—Subsec. (f)(1). Pub. L. 111–327 substituted “subsection (e)” for “subsection (a)”.
2005—Subsecs. (e), (f). Pub. L. 109–8 added subsecs. (e) and (f).
1984—Subsec. (a). Pub. L. 98–353, § 511(a), inserted “of a plan” after “After the proponent”, and “of such plan” after “modification”.
Subsec. (b). Pub. L. 98–353, § 511(b), substituted “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title” for “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification”.