What Is A Plan Support Agreement

We conclude that THE RSA is a salutary bridge between the effectiveness of a quick sale of “all assets” and the procedural protection of a reorganization plan. However, they also represent a potential pathway for opportunistic abuse. In particular, these are provisions in an RSA that hold value maximization hostage to a reorganized priority system. Therefore, we argue that the courts should carefully review THE RSRs and prohibit those that lock in the opportunistic redistribution of value. Recently, in Czyzewski v. Jevic Holding Corp., the Supreme Court expressed concern about procedural innovations that could be used to create “final sets” around the planning process and these procedural safeguards. In this regard, RSRs can be a useful tool to support compliance with the planning process.