MODIFICATION OF CHAPTER 11 PLAN BEFORE CLOSE OF VOTING

If the proponent of a chapter 11 plan files a modification of the plan after transmission of the approved disclosure statement and before the close of voting on the plan, the proponent must serve a copy of the plan, as modified, upon the debtor, the trustee, each committee, the United States Trustee, all entities directly affected by the proposed modification and such other entities as the Court may direct. On notice to such entities, the Court shall determine whether the modification adversely affects the treatment of the claim of any creditor or the interest of any equity security holder who has not accepted the modification in writing. If the Court determines that the modification is not adverse, the plan, as modified, shall be deemed accepted by all creditors and equity security holders who accepted the plan prior to modification. If the modification is adverse, the requirements of Bankruptcy Rule 3017 shall apply to the modified plan and any amendment of the disclosure statement necessitated by the modification.

Comment This rule is derived from Former Local Bankruptcy Rule 56. Pursuant to section 1127(a) of the Bankruptcy Code, the proponent of a chapter 11 plan may modify the plan at any time before confirmation. While Bankruptcy Rule 3019 governs modification of a plan after acceptance and before confirmation, this rule governs modification subsequent to the transmission of an approved disclosure statement and before the close of voting. 25 Rule 3020-1 TIME FOR OBJECTING TO CONFIRMATION IN CHAPTER 9 AND CHAPTER 11 CASES Unless the Court orders otherwise, objections to confirmation of a plan in a chapter 9 or chapter 11 case must be filed not later than seven (7) days prior to the first date set for the hearing to consider confirmation of the plan.

Comment This rule, which is derived from Former Local Bankruptcy Rule 57, designates a fixed time for objecting to confirmation as permitted by Bankruptcy Rule 3020(b)(1). The three (3) day deadline was amended to seven (7) days in 2009 to give the Court and the parties more time to consider objections before the confirmation hearing. Former subdivision (b) of this rule required disclosure of the circumstances surrounding the withdrawal of, or failure to prosecute, any objections to confirmation. This subdivision was abrogated in 2013 so as to leave to the Court’s discretion on a case-by-case basis whether to require disclosure, and the manner and extent of such disclosure, of the terms of any agreement between the plan proponent and the objecting party relating to the withdrawal of, or the failure to prosecute, an objection to confirmation of a plan.