Facilitator Guide

Chapter 11 Plan Confirmations

Facilitator Guide

Chapter 11 Plan Confirmations

Topic: Restructuring
Duration: 1 hr
Format: Remote or in person

What’s covered

Consensual Confirmations under Bankruptcy Code Section 1129(a)
- Requirements for confirmation
- “Best interests” test
- Voting procedures and criteria
Nonconsensual confirmations (or “cramdown plans”) under Section 1129(b)
- Requirements carried over from Section 1129(a)
- Requirements for the treatment of nonconsenting classes
- Absolute priority rule

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/chapter-11-plan-confirmations/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Chapter 11 Plan Confirmations

A discussion of plan confirmation requirements under Section 1129 of the Bankruptcy Code, covering both consensual and nonconsensual (or cramdown) confirmations. Includes explanations of voting requirements, the best interests test, and the absolute priority rule.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

Who needs to approve a plan for it to be considered a consensual confirmation under the Bankruptcy Code?
What are the voting requirements for each creditor class to approve a plan?
What are the voting requirements for equityholders to approve a plan?
What is the “best interests” test and how does a court determine if a plan passes?
What other requirements must be met for a consensual plan to be confirmed by the court?
What are the requirements to confirm a nonconsensual or “cramdown” plan?
What is the absolute priority rule?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Restructuring topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.