Harper v. The Oversight Committee (In re Conco, Inc.)

(6th Cir. April 28, 2017)

The Sixth Circuit affirms the district court and the bankruptcy court, holding that the sale of certain equity interests in the debtor to third parties was prohibited by the confirmed Chapter 11 plan. While the plan was silent as to such sales, the bankruptcy court did not abuse its discretion when interpreting the plan and considering the intent of the parties based on the negotiations that resulted in the final confirmed plan. Opinion below.

Judge: Donald

Attorneys for Appellants: Frost Brown Todd, Edward Michael King, John Scott Egan, Cory J. Skolnick; Hahn & Hessen, Gilbert Backenroth; Kaplan & Partners, David S. Kaplan, Casey Leigh Hinkle

Attorneys for Appellee: Bingham Greenbaum Doll, John K. Bush, Claude R. Bowles, Jr., James R. Irving; Seiller Waterman, Neil C. Bordy, Glenn Alan Cohen, Keith James Larson

2017-04-28 – in re conco

District Court Opinion

Bankruptcy Court Opinion

Author: Matt Lindblom

Harper v. Conco ESOP Trustees

(W.D. Ky. July 7, 2016)

The district court affirms the bankruptcy court’s order enjoining the transfer of certain equity interests in the reorganized chapter 11 debtor because it violated the terms of the confirmed plan. The court determines that the bankruptcy court interpreted rather than modified the plan and thus the district court reviews the appealed order for abuse of discretion. While the plan did not expressly prohibit the transfer of the equity interests, the facts surrounding the negotiation and confirmation of the plan clearly evidenced the interested parties’ intent to prohibit such transfer until a certain date. Opinion below.

Attorneys for Appellants: Kaplan & Partners, LLP, Casey L. Hinkle, David S. Kaplan; Keller Rohrback LLP, David S. Preminger; Frost Brown Todd LLC, Cory J. Skolnick, Edward M. King, John S. Egan; Hahn & Hessen LLP, Gilbert Backenroth, Jeffrey Zawadzki; Seiller Waterman, LLC, Neil Charles Bordy

Attorneys for ESOP Trustees: Stoll Keenon Ogden PLLC, Lea Pauley Goff, P. Douglas Barr

Attorneys for Oversight Committee: Bingham Greenebaum Doll LLP, Claude R. Bowles, Jr., James R. Irving, John W. Ames

2016-07-07 – harper v conco esop trustees

 

Author: Matt Lindblom