The Upside Of The Fastest Chapter 11 Confirmation Ever

Hugh McDonald and Alissa Piccione were published in Law360 for an article titled, “The Upside Of The Fastest Chapter 11 Confirmation Ever.” The article discusses the impact of accelerated confirmation of Chapter 11 plans, citing Sungard Availability Services Capital Inc., et al., a case in which the debtors confirmed a prepackaged plan of reorganization in 19 hours, the fastest confirmation of a Chapter 11 plan in the United States. They write that, “Generally, confirmation is a marathon — not a sprint. But fast-tracking confirmation is becoming more acceptable, at least among commercially minded judges. So when the need for speed is compelling, a disclosure statement and prepackaged plan may be approved simultaneously and now in as little as a day.” Detailing the advantages of one-day prepacks and pointing out that the Bankruptcy Code permits accelerated confirmation of prepacks, they conclude that “With these precedents, future debtors seeking a prompt restructuring may be able to bypass the costly and often lengthy stays in bankruptcy, thereby increasing their prospects for a successful reorganization.”