Recent caselaw demonstrates that there is a current judicial disagreement over whether the Bankruptcy Code will permit a cramdown in a jointly-administered bankruptcy case when a consenting class exists for only one of the debtors. This implicates the important issue of de facto substantive consolidation and the potential risks it poses to unsecured creditors.
USA, Delaware, Insolvency & Restructuring, Litigation, Caplin & Drysdale, Chartered, Bankruptcy, Ninth Circuit, US District Court for District of Delaware