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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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