BPZ Res. Inc. (fka BPZRQ)

[Levronefullblown]

http://thismatter.com/money/credit/bankruptcy/chapter-11/chapter-11-overview.htm

Plan Confirmation

Section 1129(a) of the Bankruptcy Code lists the requirements for confirmation, including:

the plan must be lawful and proposed in good faith;
impaired claims and interests who have rejected the plan must receive at least as much as they would have gotten under a Chapter 7 liquidation;
all impaired classes must have accepted the plan;
all priority claims must be paid in full;
and the plan must have a good chance of success.
When the reorganization plan is confirmed, the business debtor receives a discharge of most of its debts. It then must effectuate the plan to completion, after which, the court will issue a final decree.

The first 2 conditions aren't being met. The first one probably holds no water, but the 2nd one does. If BPZ would've done a chapter 7 bankruptcy, where someone actually paid a reasonable amount for their assets as opposed to this scam of a transfer, there would have been a lot more equity distributed to the impaired classes. Relating to the 3rd point

For those holding interests in the debtor, such as shareholders, a class of interests is deemed to have accepted the plan if at least 2/3 of the class voted in favor of the plan

At least 2/3 of class 3 holders need to agree with the plan, otherwise it doesn't get approved. Question is will they be content only receiving anywhere from 10-18% of their claims? That's the million dollar question.