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Chapter 11: CLAIMS AND INTERESTS

CLAIMS AND INTERESTS
Claims and interests are classified in order to allow treatment which recognizes differences in the rights of creditors and to treat these according to the facts of the case. Similar claims and interests are given similar nondiscriminatory treatment which follows sound business reasoning. However, some discrimination is permitted if it is based on sound business reasoning, is done in good faith, and the debtor could not reorganize without it, and if the degree of discrimination is related to the rational for the disparate treatment. Discrimination may be necessary to create an impaired consenting class.

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