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Abstract: 

This article examines the Chapter 11 reorganization of 4 West Holdings, Inc. and its affiliates, a group of skilled nursing facility operators that filed for bankruptcy on June 22, 2018, with a purportedly confirmable pre-negotiated plan backed by their largest creditor. Midway through the confirmation process, a dispute over the interpretation of a critical plan provision jeopardized confirmation, threatening conversion to Chapter 7 liquidation. In response, 4 West’s legal team devised a novel approach utilizing Bankruptcy Rule 3019 to modify the plan without requiring re-solicitation using Rule 3019. The bankruptcy court ultimately confirmed the Third Amended Plan on January 14, 2019. This article explores the background, negotiation history, and legal strategy employed in the 4 West case, offering critical insights into the flexibility of Rule 3019 and its application in complex Chapter 11 proceedings.

Keywords: Orianna Investment, Inc.; Post-Petition Transactions; Rule 3019

Affiliations:  1: Sidley Austin LLP; 2: Sidley Austin LLP.