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Strategically blocking an insolvency reorganisation plan is not bad faith (US)

Photo of Patrick Bracher (ZA)
By Patrick Bracher (ZA) on July 2, 2018

Where a creditor blocked a bankruptcy plan by buying available claims to get sufficient votes to do so, it was held that this was not a bad faith purchase. A finding of bad faith requires evidence of an ulterior motive. If a creditor seeks to protect its claim to the fullest extent by a strategic…

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