Feasibility Test: Confirmation of a Plan Under Section 1129(a)(11)

Summary

This practice note discusses the feasibility test under Section 1129(a)(11) of the Bankruptcy Code. Section 1129(a) contains the following requirement to confirm a Chapter 11 plan: "[c]onfirmation of the plan is not likely to be followed by the liquidation, or the need for further financial reorganization, of the debtor or any successor to the debtor under the plan, unless such liquidation or reorganization is proposed in the plan." 11 U.S.C. § 1129(a)(11).