Plan Ballot
A Plan Ballot is the written or court-approved electronic voting instrument used by an eligible creditor or equity holder to accept or reject a Chapter 11 plan and, where authorized, make related elections.
How it works
Rule 3018(c) requires an acceptance or rejection to be in writing, identify the plan, be signed by the holder or authorized agent, and conform to Official Form 314. Rule 3017(d) requires a conforming ballot to be sent to holders entitled to vote. Case-specific ballots can also include elections concerning distributions, releases or other plan options when the court approves the form.
Rule 3018 sets minimum ballot requirements
The vote must identify the plan, be signed by the holder or authorized agent and conform to the applicable official form.
Only holders entitled to vote receive voting ballots
Unimpaired classes generally do not vote, and classes deemed to reject under Section 1126(g) do not need ballots to establish rejection.
The allowed voting amount can matter
A ballot may state a claim amount for tabulation, but disputes over allowance or voting amount can require separate procedures or temporary allowance.
Ballots can include additional elections
Court-approved forms can ask holders to make distribution, release or treatment elections in addition to accepting or rejecting the plan.
Worked example: vote and release election diverge
A creditor votes to accept but separately opts out of a consensual third-party release where the approved procedures permit that choice. The plan vote and release election are tabulated under separate terms.
Master ballots can aggregate beneficial-owner instructions
For securities held through nominees, a broker or custodian may submit a master ballot reflecting instructions from multiple beneficial holders.
Common mistakes
Assuming every ballot is identical; treating the claim amount printed on a ballot as final allowance; overlooking separate elections; and assuming a completed ballot necessarily counts.
Example
An unsecured creditor receives a ballot identifying its class and claim amount. The creditor checks accept, signs electronically and submits the ballot before the Voting Deadline. The voting agent then applies the approved tabulation procedures.
Example
An unsecured creditor receives a ballot identifying its class and claim amount. The creditor checks accept, signs electronically and submits the ballot before the Voting Deadline. The voting agent then applies the approved tabulation procedures.
Professional note
A ballot can do more than record yes or no, but every additional election should be read separately. A release opt-out, distribution election or convenience-class election can have consequences distinct from the plan vote itself.
Related terms
- Third-Party Release
A Third-Party Release in Chapter 11 is a release of specified claims held by creditors or other stakeholders against nondebtor parties connected to the restructuring, such as sponsors, lenders, officers, directors or advisers.
- Class Acceptance
Class Acceptance is the Chapter 11 voting determination under Section 1126 that establishes whether a class of claims or interests has accepted a proposed plan based on the votes actually cast by eligible holders.
- Vote Designation
Vote Designation is the Section 1126(e) remedy allowing a bankruptcy court, after notice and a hearing, to disregard an entity’s plan acceptance or rejection when the vote was not in good faith or was not solicited or procured in good faith or in accordance with the Bankruptcy Code.
- Plan Voting Deadline
A Plan Voting Deadline is the court-set cutoff by which eligible holders must submit acceptances or rejections of a Chapter 11 plan for their ballots to be counted under the approved solicitation procedures.
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