Before the Chapter 11 plan is confirmed, a proponent of a plan has the right to modify it if the modified plan meets the classification requirements of Section 1122 and the contents of plan requirements of Section 1123. The old plan, as modified, becomes the new plan.
No court approval is needed for the filing of such a modification. But after filing a pre-confirmation modification, the proponent may need to file and distribute to creditors a court-approved disclosure statement containing adequate information regarding the modified plan. If the modifications are not material, the court may determine that no further disclosure is necessary. If creditors have voted on the plan prior to modification, the court will usually set a time for creditors to change their votes based upon the plan modification. If creditors do not change their votes, the court will determine acceptance or rejection of the plan based upon their original votes.
After the Chapter 11 plan is confirmed, the proponent of a plan or the reorganized debtor may modify it only if (1) there has not been “substantial consummation,” (2) the classification requirements of Section 1122 and the contents of plan requirements of Section 1123 are met, and (3) the court after notice and hearing finds that circumstances warrant the modification and confirms it under Section 1129 standards. After filing of a post-confirmation modification, the proponent may need to file and distribute to creditors a court-approved disclosure statement containing adequate information regarding the modified plan. If the modifications are not material, the court may determine that no further disclosure is necessary. If creditors have voted on the plan prior to modification, the court will usually set a time for creditors to change their votes based upon the plan modification. If creditors do not change their votes, the court will determine acceptance or rejection of the plan based upon their original votes.
Bankruptcy Code §§ 1101(2), 1127. See also Confirmation, Disclosure Statement, Substantial Consummation.