In the article, the authors review a U.S. District Court for the Southern District of Texas decision that overturned ConvergeOne’s Chapter 11 plan confirmation for violating the Bankruptcy Code’s “equal-treatment” rule. The opinion relies heavily on the Fifth Circuit’s Serta decision to hold that plans cannot provide unequal treatment to similarly situated creditors by offering some, but not all, lenders equity and backstop rights.

Pratt’s Journal of Bankruptcy Law is published eight times a year and “features analysis, practical guidance, and commentary exploring bankruptcy legal developments and decisions.” Learn more here (subscription required).