Just Following Orders: The Fifth Circuit's Incomplete Analysis of Chapter 11 Bankruptcy Cramdown in In re Village at Camp Bowie
On February 26, 2013, the U.S. Court of Appeals for the Fifth Circuit in In re Village at Camp Bowie held that the Bankruptcy Code cramdown requirement in 11 U.S.C. § 1129(a)(10) that at least one impaired class accept the reorganization plan did not distinguish between economic and discretionary impairment. Rejecting the Eighth Circuit’s holding that § 1129(a)(10) included a motive inquiry, the Fifth Circuit instead held that no policy implications could be read into the plain language of the provision. This Comment argues that the Fifth Circuit correctly interpreted § 1129(a)(10) as allowing artificial impairment, but missed the opportunity to influence other courts by not adequately supporting its conclusion with an analysis of the Bankruptcy Code’s structure or historical development.