THE PLAN OF REORGANIZATION (Page
Under section 1126(c) of the Bankruptcy
Code, an entire class of claims is deemed to accept a plan if the
plan is accepted by creditors that hold at least two-thirds in
amount and more than one-half in number of the allowed claims in
the class. Under section 1129(a)(10), if there are impaired
classes of claims, the court cannot confirm a plan unless it has
been accepted by at least one class of non-insiders who hold
impaired claims (i.e., claims that are not going to be paid
completely or in which some legal, equitable, or contractual right
is altered). Moreover, under section 1126(f), holders of
unimpaired claims are deemed to have accepted the plan.
Under section 1127(a) of the Bankruptcy
Code, the plan proponent may modify the plan at any time before
confirmation, but the plan as modified must meet all the
requirements of chapter 11. When there is a proposed modification
after balloting has been conducted, and the court finds after a
hearing that the proposed modification does not adversely affect
the treatment of any creditor who has not accepted the
modification in writing, the modification is deemed to have been
accepted by all creditors who previously accepted the plan. Fed.
R. Bankr. P. 3019. If it is determined that the proposed
modification does have an adverse effect on the claims of
non-consenting creditors, then another balloting must take place.