(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