101 Com. L.J. 115 (1996)
Is This Plan Feasible - An Empirical Legal Analysis of Plan Feasibility

handle is hein.journals/clla101 and id is 125 raw text is: IS THIS PLAN FEASIBLE? AN
EMPIRICAL LEGAL ANALYSIS
OF PLAN FEASIBILITY
NANCY RHEIN BALDIGA*
INTRODUCTION
During the pendency of a Chapter 11 case, considerable effort is
devoted to development of a feasible reorganization plan designed
to remedy the debtor's business strategy and financial condition.
Despite the efforts of the debtor, interested parties and their advi-
sors, practitioners recognize the uncertainty involved in the plan
confirmation process. As Judge Yacos noted in his decision con-
firming a contested reorganization plan proposed for a Northeastern
utility company, There obviously is no guarantee in any reorgani-
zation case that when a Court finds the plan is feasible, i.e., the per-
formance under the plan is likely to be achieved, that that in fact
will happen in the real world following confirmation.'
Using new data collected from bankruptcy practitioners involved
in reorganization cases where feasibility was an issue, the author
attempts to determine what in fact happened to selected confirmed
plans in the real world. The author first presents a legal analysis of
the issue of plan feasibility, including a discussion of the plan propo-
nent's burden of proof, the factors to be considered by the court in
its assessment of feasibility, and guidelines for evaluation of plan
projections. The article then reports on the results of a new study of
* The author is presently an Assistant Professor of Economics/Accounting at the
College of the Holy Cross in Worcester, Massachusetts. She received her M.S.T.
(Taxation), with high distinction, from Bentley College in 1992 and earned her B.A. in
Economics, summa cum laude, from Williams College in 1980. A certified public
accountant, she previously worked as an audit manager at Price Waterhouse.
The author appreciates the contribution of the many bankruptcy practitioners who
responded to the survey. She also acknowledges the valuable insights into the plan
confirmation process which were provided by William R. Baldiga, member, Brown,
Rudnick, Freed & Gesmer, Boston, Massachusetts.
1. In re New Hampshire Electric Co-Op, Inc. 138 B.R. 668, 673 (Bankr.D.N.H. 1992).

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