Opinion ID: 172833
Heading Depth: 2
Heading Rank: 1

Heading: The Competing Plans

Text: In addition to purchasing the estate's interest in the outcome of the AP, ConsumerInfo also purchased CCB Data Corporation's rights to bring claims against the estate to seek compensation for its efforts in developing the domain name, thereby acquiring the authority to propose a reorganization plan. See In re Paige, 2007 WL 4143212, at . The trustee liked ConsumerInfo's plan and, together, they filed a Joint Plan with the bankruptcy court. Under the Joint Plan, the estate would use the $1.9 million it received from the sale of its interest in the AP to ConsumerInfo in order to pay its creditors, and ConsumerInfo agreed to provide an additional $300,000 contingent payment if needed to cover certain additional claims. Further, ConsumerInfo agreed that the right to prosecute the AP and other actions would vest in a liquidating trust, headed by Mr. Jubber, and that ConsumerInfo would fund its litigation costs. Like ConsumerInfo, SMDI also purchased some creditors' claims, enabling it to propose a competing plan. See id. at . SMDI capitalized on that authority and proposed a competing Chapter 11 reorganization plan for Mr. Paige's estate. SMDI's plan, like the Joint Plan, proposes to pay off all of the estate's administrative expenses as well as all allowed claims. In exchange for SMDI's payment of the estate's debts, the estate would promise to dismiss the AP with prejudice, thereby leaving SMDI with total  or nearly total  ownership of the domain name. The confirmation of SMDI's plan is conditional on SMDI depositing money sufficient to cover those expenses into an account. [5] In its filings before the bankruptcy court, SMDI estimated those expenses, less cash assets in the estate, at $2,600,000. Before the bankruptcy court hearing on the competing plans, SMDI demonstrated its ability to cover those costs by setting aside that amount in an account. See id. at .