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11 U.S.C. § 1173 — Confirmation of plan
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The court shall confirm a plan if—
(1) the applicable requirements of [section 1129 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1129&num=0&edition=prelim) have been met;
(2) each creditor or equity security holder will receive or retain under the plan property of a value, as of the effective date of the plan, that is not less than the value of property that each such creditor or equity security holder would so receive or retain if all of the operating railroad lines of the debtor were sold, and the proceeds of such sale, and the other property of the estate, were distributed under chapter 7 of this title on such date;
(3) in light of the debtor’s past earnings and the probable prospective earnings of the reorganized debtor, there will be adequate coverage by such prospective earnings of any fixed charges, such as interest on debt, amortization of funded debt, and rent for leased railroads, provided for by the plan; and
(4) the plan is consistent with the public interest.
**(b)** If the requirements of subsection (a) of this section are met with respect to more than one plan, the court shall confirm the plan that is most likely to maintain adequate rail service in the public interest.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1173
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Source file: Laws/federal/codes/united-states-code/title-11/section-1173-confirmation-of-plan--b2f215001d.md
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Source location: Title 11, Chapter 11, § 1173; chapter-011-reorganization.md
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**(a)** The court shall confirm a plan if—
(1) the applicable requirements of [section 1129 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1129&num=0&edition=prelim) have been met;
(2) each creditor or equity security holder will receive or retain under the plan property of a value, as of the effective date of the plan, that is not less than the value of property that each such creditor or equity security holder would so receive or retain if all of the operating railroad lines of the debtor were sold, and the proceeds of such sale, and the other property of the estate, were distributed under chapter 7 of this title on such date;
(3) in light of the debtor’s past earnings and the probable prospective earnings of the reorganized debtor, there will be adequate coverage by such prospective earnings of any fixed charges, such as interest on debt, amortization of funded debt, and rent for leased railroads, provided for by the plan; and
(4) the plan is consistent with the public interest.
**(b)** If the requirements of subsection (a) of this section are met with respect to more than one plan, the court shall confirm the plan that is most likely to maintain adequate rail service in the public interest.
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 101
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The court shall confirm a plan only if all of the following requirements are met:
(1) The plan complies with the applicable provisions of this title.
(2) The proponent of the plan complies with the applicable provisions of this title.
(3) The plan has been proposed in good faith and not by any means forbidden by law.
(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable.
(5)
(A)
(i) The proponent of the plan has disclosed the identity and affiliations of any individual proposed to serve, after confirmation of the plan, as a director, officer, or voting trustee of the debtor, an affiliate of the debtor participating in a joint plan with the debtor, or a successor to the debtor under the plan; and
(ii) the appointment to, or continuance in, such office of such individual, is consistent with the interests of creditors and equity security holders and with public policy; and
(B) the proponent of the plan has disclosed the identity of any insider that will be employed or retained by the reorganized debtor, and the nature of any compensation for such insider.
(6) Any governmental regulatory commission with jurisdiction, after confirmation of the plan, over the rates of the debtor has approved any rate change provided for in the plan, or such rate change is expressly conditioned on such approval.
(7) With respect to each impaired class of claims or interests—
(A) each holder of a claim or interest of such class—
(i) has accepted the plan; or
(
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1129
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Federal law — U.S. Code and appendices · legal_authorities
On request of a party in interest and after notice and a hearing, the court may, or, if a plan has not been confirmed under [section 1173 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1173&num=0&edition=prelim) before five years after the date of the order for relief, the court shall, order the trustee to cease the debtor’s operation and to collect and reduce to money all of the property of the estate in the same manner as if the case were a case under chapter 7 of this title.
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 1174
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule**
(1) **In general** — No gain or loss shall be recognized if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization.
(2) **Limitation**
(A) *Excess principal amount* — Paragraph (1) shall not apply if—
(i) the principal amount of any such securities received exceeds the principal amount of any such securities surrendered, or
(ii) any such securities are received and no such securities are surrendered.
(B) *Property attributable to accrued interest* — Neither paragraph (1) nor so much of section 356 as relates to paragraph (1) shall apply to the extent that any stock (including nonqualified preferred stock, as defined in section 351(g)(2)), securities, or other property received is attributable to interest which has accrued on securities on or after the beginning of the holder’s holding period.
(C) *Nonqualified preferred stock*
(i) *In general* — Nonqualified preferred stock (as defined in section 351(g)(2)) received in exchange for stock other than nonqualified preferred stock (as so defined) shall not be treated as stock or securities.
(ii) *Recapitalizations of family-owned corporations*
(I) *In general* — Clause (i) shall not apply in the case of a recapitalization under section 368(a)(1)(E) of a family-owned corporation.
(II) *Family-owned corporation* — For purposes of this clause, except as provided in regulations, the term “family-owned corporation” means any corporation which is described in clause (i) of section 447(d)(2)(C) 11 See References in Text note below. throughout the 8-year period beginning on the date which is 5
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 354
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Federal law — U.S. Code and appendices · legal_authorities
Page 287
TITLE 11—BANKRUPTCY
§ 1173
their payment. Subsection (4) requires that the plan
specify the means by which, and the extent to which,
the debtor’s rail service is to be continued, and shall
identify any rail service to be terminated. Subsection
(5) permits other appropriate provisions not incon-
sistent with the chapter. With the exception of sub-
section (4), the requirements are comparable to those
of present section 77(b) [section 205(b) of former title
11]; subsection (4) emphasizes the public interest in the
preservation of rail transportation.
Section 1171 imposes on the court, rather than the
Interstate Commerce Commission, as in present section
77 [section 205 of former title 11], the responsibility for
the plan of reorganization. The Commission is empow-
ered to make final decisions subject only to review by
the court under the standards of the Administrative
Procedure Act [5 U.S.C. 551 et seq. and 701 et seq.] as to
any part of the plan which deals with transportation
matters, such as the grant of operating rights of or
over, or transfer of, the debtor’s rail lines to other car-
riers.
Subsection (a) requires the trustee to file a plan of re-
organization within 18 months after the petition is
filed, and permits the court, for good cause shown, to
extend such time limit. Subsection (b) permits a plan
to be proposed by any interested person, and permits
the trustee to revise his plan at any time before it is
approved by the court.
Subsections (c), (d) and (e) require the court, when a
plan is submitted by the trustee or, if the court deems
it worthy of consideration, a plan submitted is pro-
posed by any other person proposes the transfer of, or
operation of or over, any of the debtor’s lines by other
carriers, to refer to suc
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 1173
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