SUBCHAPTER V OF CHAPTER 11 | 2024–2025
Represented a real estate holding company in a Subchapter V Chapter 11 case filed in the U.S. Bankruptcy Court for the Northern District of California, San Francisco Division (Case No. 24-30241) wth over 3 million of secured commercial debt. The Debtor has prior chapter 11 filings and was accused of a bad-faith filing – accusations that the Debtor successfully rebutted. The matter presented one of the more technically demanding issues in Chapter 11 practice: a secured creditor invoked its election under 11 U.S.C. § 1111(b), which permits an undersecured creditor to have its entire claim treated as fully secured in exchange for waiving its unsecured deficiency claim, and then objected to confirmation of the debtor’s proposed plan.
The firm successfully overcame the creditor’s confirmation objection and obtained court approval of a plan that nonetheless honored the 1111(b) election — preserving the debtor’s reorganization while satisfying the strict statutory requirements that 1111(b) imposes on the present value and total payment streams owed to electing creditors. The plan was confirmed on September 16, 2025 after a contested confirmation hearing, allowing the Debtor to retain title to all real estate and provide a 1% dividend to general unsecured creditors.
Result:
Chapter 11 plan confirmed over secured creditor’s objection (Sept. 16, 2025)
