Temple City Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 1101

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER I - OFFICERS AND ADMINISTRATION

-HEAD-
    Sec. 1101. Definitions for this chapter

-STATUTE-
      In this chapter - 
        (1) "debtor in possession" means debtor except when a person
      that has qualified under section 322 of this title is serving as
      trustee in the case;
        (2) "substantial consummation" means - 
          (A) transfer of all or substantially all of the property
        proposed by the plan to be transferred;
          (B) assumption by the debtor or by the successor to the
        debtor under the plan of the business or of the management of
        all or substantially all of the property dealt with by the
        plan; and
          (C) commencement of distribution under the plan.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2626.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      This section contains definitions of three terms that are used in
    chapter 11. Paragraph (1) defines debtor in possession to mean the
    debtor, except when a trustee who has qualified in serving in the
    case.
      Paragraph (2), derived from section 229a of current law [section
    629(a) of former title 11], defines substantial consummation.
    Substantial consummation of a plan occurs when transfer of all or
    substantially all of the property proposed by the plan to be
    transferred is actually transferred; when the debtor (or its
    successor) has assumed the business of the debtor or the management
    of all or substantially all of the property dealt with by the plan;
    and when distribution under the plan has commenced.
      Paragraph (3) defines for purposes of Chapter 11 a public company
    to mean "a debtor who, within 12 months prior to the filing of a
    petition for relief under this chapter, had outstanding liabilities
    of $5 million or more, exclusive of liabilities for goods,
    services, or taxes and not less than 1,000 security holders." There
    are, as noted, special safeguards for public investors related to
    the reorganization of a public company, as so defined.
      Both requirements must be met: liabilities, excluding tax
    obligations and trade liabilities, must be $5 million or more; and
    (2) the number of holders of securities, debt or equity, or both,
    must be not less than 1,000. The amount and number are to be
    determined as of any time within 12 months prior to the filing of
    the petition for reorganization.

-End-
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