IN RE: INTROGEN THERAPEUTICS, INC., INTROGEN TECHNICAL SERVICES, INC., Debtors., 429 B.R. 570

Summary

The unsecured creditors contended that they constituted the only impaired class of creditors, that the class rejected the plan, and that there was thus no impaired class which accepted the plan. The creditors also argued that substantive consolidation was not warranted, and that property interests retained by a class of equity holders violated the absolute priority rule. The bankruptcy court held that confirmation of the debtors' plan was warranted. The class consisting of the single secured creditor voted to accept the plan and the class was impaired, even though it would be paid in full, since the plan modified the secured creditor's contract rights and provided no postpetition interest. Further, consolidation of the estates was appropriate since creditors dealt with the debtors as a single economic unit, without relying on their separate identities, in extending credit, and it would be costly and time-consuming to unscramble the assets and liabilities of the debtors. Also, there was...