Module 3 · Chapter 8

Classes, the Convening Hearing and the Plan Meetings

Before creditors vote on a plan, the court decides who votes together. This chapter shows how the classes are drawn, how a noteholder casts its vote, and what the count means.

≈ 9 min read 8-question test

In this chapter

  • Which creditors vote together, and why the consent fee did not split them
  • The steps from the first letter to creditors to the meetings
  • How a noteholder votes, and what the final count shows

8.1Classes and votes in one paragraph

Creditors vote on a plan in classes. A class is a group of creditors whose rights are close enough for them to decide together. Valkenrade proposes two classes: the bank, and the noteholders.

Before anyone votes, the court checks the classes at a first hearing, the convening hearing. If it agrees, it orders a meeting of each class, called a plan meeting. You help collect the votes and keep the count.

Key point

The court settles who votes together before anyone votes. Each class then decides at its own meeting.

Also in this chapter

  1. Which creditors vote together
  2. The steps before the meetings
  3. How a noteholder votes
  4. What the count shows
  5. Your job

Preview

The rest of this chapter opens with a free account. Every edition is free to read until 31 January. Open a free account by the end of that day and keep every edition published by then, for good. Open it from the edition home →