Cal Dive International Inc (CDVIQ)

[Jacob-03]

Chapter 11 Reorganization Plans
Ordinarily, the debtor has the exclusive right for four months after it files Chapter 11 to propose a reorganization plan. Upon a showing of good cause, the court can extend the debtor’s “exclusivity period” to file a Chapter 11 plan to up 18 months after the petition date. The court also can shorten the exclusivity period depending on the circumstances.

Once the “exclusivity period” expires, the creditors’ committee or other parties can propose competing reorganization plans. Competing plans are relatively rare in Chapter 11 cases. More often, creditors or other parties dissatisfied with the debtor’s progress will move to dismiss or convert the case to Chapter 7.