February 2017
The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy arena.

A Chapter 11 case whose purpose is (or becomes during its course) a liquidation rather than a reorganization of the debtor. A liquidating Chapter 11 is usually preferable to non-bankruptcy liquidation in that it is more orderly and occurs in one forum, preventing a haphazard dismemberment of the debtor due to multiple creditors racing to any number of courthouses, exercising their rights independently and without any coordination with each other or with the debtor.

Bankruptcy Code § 1129(a)(11). See also Liquidating Plan.

Synonym: “Trustee Avoidance Plan.”

"The Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, and Dan Flanigan, who have a combined total of more than 110 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.