To Vote or Not to Vote: Court Holds That “Out of Money” Junior Creditor Barred from Objecting to Plan
By EsqSocial Corporation 22/04/21
On March 31, 2021, the U.S. Bankruptcy Court for the District of Kansas held in In re Fencepost Productions Inc. that even though an assignment of voting rights provision in a subordination agreement was not enforceable in a bankruptcy proceeding, a subordinated creditor nevertheless was barred from participating in proceedings related to a chapter 11 plan and disclosure statement on the basis that the subordinated creditor lacked prudential standing....
By: Cadwalader, Wickersham & Taft LLP