Bankr. E.D.N.C.: In re L.L.C Murphrey Co.- Revocation of Confirmation Order Denied

Summary: The Chapter 11 plan, confirmed in 2001,  provided that the liability of the guarantors was capped at the amount of the Recapitalized Debt.  The creditor, originally Wachovia, however, argued that this provision was impermissible and should not be given effect now. The bankruptcy court found that this argument was fallacious.  First, the terms of the confirmation order had been fully negotiated by a sophisticated creditor with an experienced attorney from a large law firm. That aside, pursuant to both A.H. Robins Company, Inc. v Mabey, 880 F. 2d 694 (4th Cir. 1989) and the more recent Behrmann v. National Heritage Foundation, 663 F. 3d 704 (4th Cir. 2011) (see:  http://ncbankruptcyexpert.com/?p=336), provisions modifying guaranties are consistent with applicable law. Continuing, the  court pointed to 11 U.S.C. § 1144, which authorized actions seeking revocation of a confirmation order only within 180 days (and then only if procured by fraud.) For a copy of the opinion, please see: L.L.C Murphrey Co.- Revocation of Confirmation Order Denied,pdf