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FAQ / Who may propose a plan of reorganization or liquidation under chapter 11?The Bankruptcy Code provides a debtor-in-possession with exclusive rights to file a plan for 120 days from the date of the order for relief under chapter 11 and, if a plan is filed within such 120 day period, to gain acceptances of the plan from each class of claims or interests entitled to vote thereon within 180 days from the date of such order for relief. Other parties-in-interest such as a creditor, a creditors’ committee or an equity security holders’ committee may file a plan only if a trustee has been appointed in the case or the debtor has not filed or gained acceptances of a plan before the expiration of the 120/180 day exclusivity periods. However, on the request of a party-in-interest made within the respective exclusivity periods, the court may reduce or increase the 120/180 day exclusivity periods, provided, however, that the 120 day period may not be extended beyond a date that is 18 months after the date of the order for relief under chapter 11, and the 180 day period may not be extended beyond a date that is 20 months after the date of such order for relief. |
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