In re Atlanta-Stewart Partners

193 B.R. 79 (1996)

From our private database of 47,500+ case briefs, written and edited by humans—never with AI.

In re Atlanta-Stewart Partners

United States Bankruptcy Court for the Northern District of Georgia
193 B.R. 79 (1996)

  • Written by Abby Roughton, JD

Facts

Atlanta-Stewart Partners (debtor) filed for Chapter 11 bankruptcy in 1995. Atlanta-Stewart’s proposed reorganization plan classified Atlanta-Stewart’s creditors into five classes. Class 4 included unsecured creditors holding allowed claims of less than $1,000. Atlanta-Stewart proposed paying the Class 4 creditors 95 percent of their claims’ value. Equitable Life Insurance Company of Iowa (Equitable) (creditor) and the United States trustee objected to Atlanta-Stewart’s disclosure statement regarding the proposed reorganization plan. Equitable asserted that Atlanta-Stewart had artificially impaired Class 4 by proposing to pay 95 percent of the claims’ value instead of 100 percent. According to Equitable, if Atlanta-Stewart had not artificially impaired the class, Atlanta-Stewart would not have been able to satisfy the plan-confirmation requirement that at least one impaired class vote to accept Atlanta-Stewart’s plan. The United States trustee noted that paying the extra 5 percent to Class 4 would cost Atlanta-Stewart only $154.33. Atlanta-Stewart argued that it had not artificially impaired Class 4 and further asserted that even if it paid Class 4 in full, Class 4 would still be considered impaired under the 1994 amendments to 11 U.S.C. § 1124. The bankruptcy court considered the parties’ arguments in deciding whether to approve Atlanta-Stewart’s plan-disclosure statement.

Rule of Law

Issue

Holding and Reasoning (Kahn, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 966,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 966,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 47,500 briefs, keyed to 1,007 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
  • AI-generated podcast version of every brief — listen on the go, between classes, or whenever reading isn’t an option. New

Access this case brief for FREE

With a 7-day free trial membership
Here's why 966,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 47,500 briefs - keyed to 1,007 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Debtors and Creditors

Key Terms

  • Chapter 11 BankruptcyA type of voluntary bankruptcy that allows a debtor to continue operating a business while reorganizing its finances to ensure payment to creditors.
  • Reorganization PlanIn bankruptcy law, a plan for corporate restructuring in a chapter 11 case.
  • 11 U.S.C. § 1129(a)(10)A provision of the United States Bankruptcy Code that prohibits confirmation of a reorganization plan unless the plan has been accepted by at least one impaired class that does not include insiders, if any impaired classes exist.
  • Chapter 11 Disclosure StatementA document disclosing adequate information about a corporate debtor’s finances. The bankruptcy court must approve the disclosure statement before the debtor can solicit votes for confirmation of the reorganization plan.
  • Impaired ClaimA claim subject to modification under a Chapter 11 reorganization plan.

Understand your casebook readings in seconds

Use our case briefs to comprehend your casebook readings faster, supplement your notes and outlines, and outshine your peers in class.

Get instant access to over 47,500+ expert-written case briefs in a searchable database keyed to 1,007 law school casebooks.

Case book preview
Start your free 7-day trial