Author: Bliss Leonard

by Nathan Gen­car­el­la*

Can a bank­rupt­cy court may approve a pri­or­i­ty-skip­ping “gift” set­tle­ment in a Chap­ter 11 pro­ceed­ing pri­or to the approval of a final plan over the objec­tion of a dis­ad­van­taged class of cred­i­tors? In this Con­tri­bu­tion, Nathan Gen­car­el­la (’19) argues that the prin­ci­ples of the recent Supreme Court deci­sion Czyzews­ki v. Jevic Hold­ing Corp. neces­si­tate the appli­ca­tion of the absolute pri­or­i­ty rule to pre-plan set­tle­ments in order to pre­serve the integri­ty of the Bank­rupt­cy Code’s care­ful­ly cal­i­brat­ed pri­or­i­ty scheme. Ulti­mate­ly, this Con­tri­bu­tion estab­lish­es that this exten­sion of Jevic is re-affirmed by both the dic­tates of pub­lic pol­i­cy and the under­ly­ing text of the statute itself.