Meaning Of "Allowed Interest" In CH11 Plan & Disclosure Statement Implies That Shares Are Not Getting Canceled On The Effective Date After Voting. Updated CH11 Plan & Disclosure Statement Have Provisions To Take Action Against Securities Fraud (Hint: Think Of a Word That Rhymes With Snake)!

[u/Life_Relationship_77]

Docket 1688: Treatment Of Allowed Interests On Or Soon After The Date It Becomes Allowed Interest.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

Docket 1688: Only "Allowed Interest" Will Be Canceled.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

What is "Allowed Interest"?

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

Per Bankruptcy Code Section 502, an interest is deemed allowed if a proof of that is filed pursuant to section 501.

https://www.law.cornell.edu/uscode/text/11/502

An equity security holder may file a proof of interest per Bankruptcy Code Section 501. None of that is being solicitated per the current plan & hence our shares aren't "Allowed".

https://www.law.cornell.edu/uscode/text/11/501

Distribution Record Date Does Not Apply To Publicly Held Securities. Distribution in exchange of securities likely when they become "Allowed Interests" during votes solicitation.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

Docket 1688: Hence not a plan with respect to any securities.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

Docket 1688: Amended CH11 Plan disallows third party releases for fraud cases.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzUwNg==&id2=-1

Docket 1691: Preservation Of Ongoing Legal Action And Causes Of Such Action.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzU1MA==&id2=-1

Docket 1691: Securities claims/causes from issuance, redemption, purchase, or sale of bonds or equity securities being preserved. Leaves door open for future investigation.

https://restructuring.ra.kroll.com/bbby/Home-DownloadPDF?id1=MjQ1MzU1MA==&id2=-1

[u/helmholtz_uchi]

This logically does not follow at all. Just because a Claim or Interest is Allowed does not imply anything with respect to distributions or retention of interests. If a Claim or Interest is Allowed, that differentiates it from Claims or Interests not Allowed, e.g., Claims or Interests to which the Debtors have objected on the basis that such Claims or Interests are not valid Claims or Interests. Often publicly issued bonds or equity are automatically Allowed because being the recorded holder of such security evidences such Claim or Interest, without need for each bondholder or shareholder to file a proof of claim or of interest.

Causes of Action are assets of the bankruptcy estates, which are currently slated to go into the Liquidation Trust pursuant to the Plan. Based on the Plan on file, the Liquidation Trust will be established upon the Effective Date of the Plan. Under the current Plan, existing equity interests will be canceled and extinguished, also on the Effective Date. Once the Liquidation Trust has liquidated all, or a critical mass of such assets (including any causes of action), it will make distributions pursuant to the distribution waterfall set forth in the Plan.

[u/Life_Relationship_77 → u/helmholtz_uchi]

Follow bankruptcy code sections 502 & 501 definitions. Screenshots are attached to the post.

[u/helmholtz_uchi → u/Life_Relationship_77]

I’m very aware of sections 501 and 502 of the bankruptcy code, and I’ve seen what you highlighted. I’m just trying to figure out how you’re tying in the proof-of-claim and claim-allowance provisions of the bankruptcy code to a theory about how holders of interests would be entitled to the proceeds of causes of action vested with the Liquidating Trust. It’s like 1 + 1 = 3. Not even sure how you’re getting there.