Undistributed Funds under a Chapter 11 Liquidating Plan
U.S. Bankruptcy Court for the Eastern District of Pennsylvania
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(a) Definition. The term “undistributed funds” in this rule means funds available for distribution under a chapter 11 liquidating plan that are undistributed because (1) a creditor has rejected or forfeited its right to a distribution under the plan; (2) the administrative costs of distribution effectively preclude further distribution under the plan; or (3) no one that has a right to the funds under the plan. (b) Motion for Authority to Disburse Undistributed Funds. If there are undistributed funds and the chapter 11 liquidating plan does not provide for the disposition of the undistributed funds, the disbursing agent may file a motion for authority to disburse the undistributed funds to an entity recommended by the disbursing agent.