A Chapter 11 creditors' committee has the final say on the confirmation of the reorganization plan, after which the debtor is discharged from any debts that arose before the date of confirmation.

Question

Quizplus · Accepted Answer

The court-not the creditors-will hold a hearing on the confirmation of the reorganization plan. A confirmation officially places a plan in operation. After confirmation, all property dealt with in the plan is free and clear of claims of creditors and equity security holders. The debtor is discharged from any debts that arose before the date of confirmation.

A Chapter 11 Creditors' Committee Has the Final Say on the Confirmation