United States Second Circuit

Bankruptcy court order approving a settlement prior to approval of a reorganization plan is vacated since, in the Chapter 11 context, whether a pre-plan settlement's distribution plan complies with the Bankruptcy Code's priority scheme will be the most important factor for a bankruptcy court to consider in approving a settlement under Bankruptcy Rule 9019.

Appellate Information

• Decided 03/05/2007
• Published 03/05/2007

Judges

• WESLEY, Circuit Judge:, Before: SOTOMAYOR, WESLEY, AND HALL, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Garrett B. Johnson, Kirkland & Ellis LLP, Chicago, IL (James H.M. Sprayregen, Kirkland & Ellis LLP, Chicago, IL;  Frank Holozubiec and Gregory T. Heyman, Kirkland & Ellis LLP, New York, NY), for Appellant.


• For Appellees:
  
• Martin J. Bienenstock, Weil, Gotshal & Manges LLP, New York, N.Y. (Greg A. Danilow and Diane Harvey, Weil, Gotshal & Manges LLP, New York, NY), for Appellee Official Committee of Unsecured Creditors., Andrew D. Gottfried, Morgan, Lewis & Bockius LLP, New York, N.Y. (Richard S. Toder, William C. Heuer and Robert E. Cortes, Morgan, Lewis & Bockius LLP, New York, NY), for Appellee JPMorgan Chase Bank, N.A.