Bankruptcy Code—Insider Status
U.S. Bank N.A. v. Village at Lakeridge, LLC, No. 15-1509
The Bankruptcy Code affords special treatment to creditors who are considered “insiders” under the Code. The Code provides that, before a Chapter 11 plan of reorganization may be approved, at least one class of impaired claims must vote in favor of the plan, determined “without including any acceptance of the plan by any insider.” 11 U.S.C. § 1129(a)(10). The Supreme Court has granted certiorari to resolve a circuit split over whether a bankruptcy court’s determination of insider status with respect to a particular claimholder should be reviewed de novo or for clear error.