UNCLAIMED AND UNDISTRIBUTED FUNDS IN LIQUIDATING

CHAPTER 11 CASES (a) Unclaimed Funds. A Chapter 11 liquidating plan may provide that unclaimed funds may be redistributed to other creditors or administrative claimants or donated to a not-for-profit, non-religious organization identified in the plan or disclosure statement accompanying the plan. (b) Undistributable Funds. A Chapter 11 liquidating plan may provide that any undistributable funds, if applicable or practicable, may be redistributed to other creditors or administrative claimants or donated to a not for profit, non-religious organization identified in the plan or disclosure statement accompanying the plan.

(1) Undistributable funds are any funds other than unclaimed funds, including funds that cannot be disbursed because: (A) a creditor has affirmatively rejected a Ver. 25.01 (December 1, 2025) 18 distribution; (B) the administrative costs of distribution effectively interfere with distribution; or (C) all creditors, including administrative claimants, have been paid in full and there is no one that has a right to the funds. (2) If a Chapter 11 liquidating plan does not provide for the disposition of undistributable funds and there are any such funds at the time of final distribution under the plan, the disbursing agent must file a motion, upon notice and hearing, proposing disposition of such funds, including as proposed in this Rule or otherwise.