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2021 Stroock Bankruptcy Guide

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157 Given the severe consequence of a decision to designate a vote, however, courts have determined that the remedy should only be used sparingly. DISH Network Corp., 634 F.3d at 101–02 (citing In re Adelphia Commc'ns Corp., 359 B.R. 54, 61 (Bankr. S.D.N.Y. 2006)). Thus, actions taken by a creditor in aid of its interests as a creditor, even those considered to be "selfish," or the mere existence of a motive other than that of a creditor, may not warrant vote designation. DISH Network Corp., 634 F.3d at 102. Instead, courts review the totality of the circumstances surrounding the creditor's behavior to determine if such actions are sufficiently egregious to warrant disqualification. In particular, courts focus on the nature, timing and extent of the allegedly bad behavior of the party whose vote is at issue as well as the party's relationship to the debtor. F. Chapter 11 Plan Unlike Chapter 7, where the distributions to creditors and equity holders are governed strictly by the Bankruptcy Code, distributions in Chapter 11 cases are, to a very large extent, far more flexible. Although there are rules governing distributions to creditors and equity holders in Chapter 11, parties are given wide latitude in crafting the plan and providing for distributions under the plan. Set forth below is a summary of the more important rules governing the plan process in Chapter 11. 1. Exclusivity The debtor-in-possession enjoys the exclusive right to file a plan for the first 120 days of a Chapter 11 bankruptcy case. 11 U.S.C. § 1121(b). In a small business case, the debtor-in- possession's exclusive period is increased to 180 days. 11 U.S.C. § 1121(e). The debtor's exclusive period ends (i) upon the appointment of a Chapter 11 trustee, (ii) if the debtor has not filed a plan prior to the expiration of the 120-day period or (iii) if the debtor has not filed a plan that has been accepted by each impaired class of claims or interests within the first 180 days of the bankruptcy case. 11 U.S.C. § 1121(c). Both the 120-day and 180-

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