Common use of Acceptance by Impaired Classes Clause in Contracts

Acceptance by Impaired Classes. The Bankruptcy Code requires, as a condition to confirmation, except as described in the following section, that each class of Claims or equity interests impaired under a plan, accept the plan. A class that is not “impaired” under a plan is deemed to have accepted the plan and, therefore, solicitation of acceptances with respect to such a class is not required.20 Section 1126(c) of the Bankruptcy Code defines acceptance of a plan by a class of impaired Claims as acceptance by Holders of at least two-thirds in dollar amount and more than one-half in a number of Allowed Claims in that class, counting only those Claims that have actually voted to accept or to reject the plan. Thus, a class of Claims will have voted to accept the Plan only if two-thirds in amount and a majority in number of the Allowed Claims in such class that vote on the Plan actually cast their ballots in favor of acceptance. 20 A class of claims is “impaired” within the meaning of section 1124 of the Bankruptcy Code unless the plan (a) leaves unaltered the legal, equitable and contractual rights to which the claim or equity interest entitles the holder of such claim or equity interest or (b) cures any default, reinstates the original terms of such obligation, compensates the holder for certain damages or losses, as applicable, and does not otherwise alter the legal, equitable, or contractual rights to which such claim or equity interest entitles the holder of such claim or equity interest. Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests as acceptance by Holders of at least two-thirds in amount of Allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class of Interests will have voted to accept the Plan only if two-thirds in amount of the Allowed Interests in such class that vote on the Plan actually cast their ballots in favor of acceptance. If a Class contains Holders of Claims or Interests eligible to vote and no Holders of Claims or Interests eligible to vote in such Class vote to accept or reject the Plan, the Plan shall be presumed accepted by the Holders of such Claims or Interests in such class.

Acceptance by Impaired Classes. The Bankruptcy Code requires, as a condition to confirmation, except as described in the following section, that each class of Claims claims or equity interests impaired under a plan, accept the plan. A class that is not “impaired” under a plan is deemed to have accepted the plan and, therefore, solicitation of acceptances with respect to such a class is not required.20 required.8 Section 1126(c) of the Bankruptcy Code defines acceptance of a plan by a class of impaired Claims claims as acceptance by Holders holders of at least two-thirds in dollar amount and more than one-half in a number of Allowed Claims allowed claims in that class, counting only those Claims claims that have actually voted to accept or to reject the plan. Thus, a class of Claims will have voted to accept the Prepackaged Plan only if two-thirds in amount and a majority in number of the Allowed Claims in such class that vote on the Prepackaged Plan actually cast their ballots in favor of acceptance. 20 A class of claims is “impaired” within the meaning of section 1124 of the Bankruptcy Code unless the plan (a) leaves unaltered the legal, equitable and contractual rights to which the claim or equity interest entitles the holder of such claim or equity interest or (b) cures any default, reinstates the original terms of such obligation, compensates the holder for certain damages or losses, as applicable, and does not otherwise alter the legal, equitable, or contractual rights to which such claim or equity interest entitles the holder of such claim or equity interest. Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests as acceptance by Holders holders of at least two-thirds in amount of Allowed allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class of Interests will have voted to accept the Prepackaged Plan only if two-thirds in amount of the Allowed Interests in such class that vote on the Prepackaged Plan actually cast their ballots in favor of acceptance. If Pursuant to Article III.E of the Prepackaged Plan, if a Class contains Holders of Claims or Interests eligible to vote and no Holders holders of Claims or Interests eligible to vote in such Class vote to accept or reject the Prepackaged Plan, the Plan shall be presumed accepted by the Holders holders of such Claims or Interests in such classClass shall be deemed to have accepted the Prepackaged Plan.

Acceptance by Impaired Classes. The Bankruptcy Code requires, as a condition to confirmation, except as described in the following section, that each class of Claims claims or equity interests impaired under a plan, accept the plan. A class that is not “impaired” under a plan is deemed to have accepted the plan and, therefore, solicitation of acceptances with respect to such a class is not required.20 required. Section 1126(c) of the Bankruptcy Code defines acceptance of a plan by a class of impaired Claims claims as acceptance by Holders holders of at least two-thirds in dollar amount and more than one-half in a number of Allowed Claims allowed claims in that class, counting only those Claims claims that have actually voted to accept or to reject the plan. Thus, a class of Claims will have voted to accept the Plan only if two-thirds in amount and a majority in number of the Allowed Claims in such class that vote on the Plan actually cast their ballots in favor of acceptance. 20 A class of claims is “impaired” within the meaning of section 1124 of the Bankruptcy Code unless the plan (a) leaves unaltered the legal, equitable and contractual rights to which the claim or equity interest entitles the holder of such claim or equity interest or (b) cures any default, reinstates the original terms of such obligation, compensates the holder for certain damages or losses, as applicable, and does not otherwise alter the legal, equitable, or contractual rights to which such claim or equity interest entitles the holder of such claim or equity interest. Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests as acceptance by Holders holders of at least two-thirds in amount of Allowed allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class of Interests will have voted to accept the Plan only if two-thirds in amount of the Allowed Interests in such class that vote on the Plan actually cast their ballots in favor of acceptance. If Pursuant to Article III of the Plan, if a Class contains Holders of Claims or Interests eligible to vote and no Holders of Claims or Interests eligible to vote in such Class vote to accept or reject the Plan, the Plan shall be presumed accepted by the Holders of such Claims or Interests in such classClass shall be deemed to have accepted the Plan.

Acceptance by Impaired Classes. The Bankruptcy Code requires, as a condition to confirmation, except as described in the following section, Section 1129(a) requires that each class of Claims claims or equity interests that is impaired under a plan, plan accept the planplan (subject to the "cramdown" exception contained in Bankruptcy Code Section 1129(b)). A class that is not “impaired” of claims under a plan is deemed to have accepted accepts the plan and, therefore, solicitation of acceptances with respect to such a class if the plan is not required.20 Section 1126(c) of the Bankruptcy Code defines acceptance of a plan accepted by a class of impaired Claims as acceptance by Holders of creditors that hold at least two-thirds in dollar amount and more than one-half in a number of Allowed Claims the allowed claims in the class that class, counting only those Claims that have actually voted to accept or to reject vote on the plan. Thus, a A class of Claims will have voted to accept interests accepts the Plan only plan if the plan is accepted by holders of interests that hold at least two-thirds in amount and a majority in number of the Allowed Claims allowed interests in such the class that actually vote on the Plan actually cast their ballots in favor of acceptancea plan. 20 A class that is not "impaired" under a plan is conclusively presumed to have accepted the plan. Solicitation of claims acceptances from such a class is “not required. A class is "impaired” within the meaning of section 1124 of the Bankruptcy Code " unless the plan (ai) leaves unaltered the legal, equitable and contractual rights to which the a claim or equity interest in the class entitles the holder of such claim or equity interest are not modified or (bii) cures the effect of any default, reinstates default is cured and the original terms of such obligationthe obligation are reinstated. Under the Plan, compensates Class 1 (Priority Claims), Class 3a (the holder for certain damages or lossesTruck Secured Claim), as applicableClass 3b, (the Van Secured Claim) and does Class 3c (the Crow Secured Claims) and Class 6 (General Unsecured Claims) are not otherwise alter the legal, equitable, or contractual rights to which such claim or equity interest entitles the holder of such claim or equity interest. Section 1126(d) of the Bankruptcy Code defines acceptance of a plan by a class of impaired equity interests as acceptance by Holders of at least two-thirds in amount of Allowed interests in that class, counting only those interests that have actually voted to accept or to reject the plan. Thus, a Class of Interests will have voted and are deemed to accept the Plan only if two-thirds in amount Plan. All other Classes of the Allowed Claims and Interests in such class that vote on under the Plan actually cast their ballots in favor of acceptanceare impaired under the Plan. If a Class contains Holders of Claims or Interests eligible to vote and no Holders of Claims or Interests eligible to vote in such Class The Debtor believes that all impaired Classes will vote to accept or the Plan, and, therefore, the Plan will comply with this requirement for confirmation. Nonetheless, if an impaired Class votes to reject the Plan, the Debtor reserves its right to seek confirmation of the Plan shall be presumed accepted by pursuant to Bankruptcy Code Section 1129(b), and will provide an analysis of the Holders Plan's compliance with the cramdown provisions in a memorandum of such Claims or Interests law in such classsupport of confirmation of the Plan.