Rejecting the formalistic approach, the Delaware Bankruptcy Court in Indianapolis Downs, LLC focused on the policies underlying the idea of the disclosure statement to uphold a post-petition lock-up agreement, entered into before approval of a disclosure statement, with sophisticated financial players who had access to the material information that the disclosure statement would have provided. This opinion represents a potentially significant relaxation of the bankruptcy solicitation rules and validates what has become a standard and often essential practice of involving major creditors in the negotiations leading to a proposed plan.
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