Pub. 1 2021 Issue 1

February 2021 | 7 subchapter V, their plan could not be confirmed. The UST reasoned the plan was unconfirmable because there was no disclosure statement and it did not provide for payment of UST fees. The Court agreed that the plan would need to be modified to provide for payment of UST fees, because those fees would be owed going forward, but disagreed that it could not be con- firmed without a disclosure statement. The Court first observed that, by statute, a debtor may proceed under subchapter V unless and until the Court determines in- eligibility. Here, the debtors had filed their plan and secured the votes of all impaired classes before the UST brought its eligibil- ity challenge to a head. Further, although the UST had objected to eligibility, it had not previously demanded that the debtors file a disclosure statement. The Court thus found the UST had waived its argument about the disclosure statement. Moreover, the Court found the plan sub- stantially complied with section 1125 by supplying creditors with “adequate information.” As evidence, the Court point- ed to the fact that “all voting impaired cred- itors voted in favor of the plan and no party requested the court make § 1125 applicable” as would be necessary for section 1125 to apply in a subchapter V case. This, the Court reasoned, meant creditors concluded they had sufficient information. Finally, the Court noted that when accep- tances or rejections are not required and are not solicited, it may be the case that no disclosure statement should be required. One might wonder whether this authori- ty, if widely adopted, could eliminate the need for disclosure statements in certain prepackaged plans where non-consenting creditor classes are not impaired and thus not entitled to vote. ■ Ryan C. Hardy is a partner at Spencer Fane LLP in the firm’s St. Louis office The Court agreed that the plan would need to be modified to provide for payment of UST fees, because those fees would be owed go - ing forward, but disagreed that it could not be confirmed without a disclosure statement. The MIBA’s employee/dependent scholarship program pro- vides greater penetration to and more benefit for our member banks and their employees. This year, the MIBA will award 16 $500 scholarships again, with four awarded to member banks in each of the four membership regions. Each member bank CEO selects at their discretion a deserving employee or an employee’s dependent who wishes to further their education in either a graduate or undergraduate curriculum. The award may be used for the furtherment of any type of educational goal by the selected “winner.” It will be up to you, the CEO, to select an individual who truly warrants this scholarship assistance. Some banks hold their own “drawing” to select the applicant. This scholarship program is designed to meet the financial needs of community bank employees more than to recognize scholastic achievement. The determination of such needs will be left to the sole discretion of our member CEO submitting the application. We feel this award opportunity will be a valuable addition to our member banks’ employees in furthering their education either in the field of banking or helping to make possible continuing education for their dependents. “Winners” will be drawn by lottery from each of the four MIBA member bank regions. Four $500 scholarships will be awarded in each of these regions. A check will be forwarded after the selection process to the submitting bank CEO for presentation to their bank employee/dependent. Applications have been mailed, and we are asking that each member CEO submit only one application per charter and that all applications be returned by April 16 for the drawing to be held at our May 2021 Directors and Officers Seminar. Bank CEOs with winning employees/ dependents will be notified shortly thereafter. We hope you will find this a valuable tool in enabling you to assist worthy employees in attaining their educational goals. We thank you for your membership and support. ANNUAL MIBA SCHOLARSHIP AWARDS FOR MEMBER BANK EMPLOYEES OR THEIR DEPENDENTS