Under the “plain language” of the Bankruptcy Code, at least one class of creditors must accept a Chapter 11 plan for it to be confirmed. Transwest Resort Properties, Inc., and four related companies filed a petition for bankruptcy under Chapter 11. The five debtors filed a joint reorganization plan. Several classes of their creditors approved the plan. Grasslawn Lodging, LLC, filed a claim based on its loan to two of the companies and objected to the plan. Grasslawn further asserted that the Code’s confirmation requirement applied on a “per debtor,” not a “per plan,” basis, and because Grasslawn was the only class member for two of the debtors, the plan in this case did not meet the test. Can the court order a “cram-down”? Why or why not? [In the Matter of Transwest Resort Properties, Inc., 881 F.3d 724 (9th Cir. 2018)] (See Reorganizations.)
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