William Edward Julien, Ch. 11, BK10-82442-TLS (Jan. 10, 2014)
The court granted an unsecured creditor’s motion for relief from previous orders that had altered the terms of the debtor’s confirmed Chapter 11 plan without proper notice or opportunity to object. The debtor’s proposal to use proceeds earmarked in the plan for unsecured creditors to instead pay administrative expense claims, with no formal notice to the unsecured creditors and without fully advising the court that the proposal would modify the plan, should not have been permitted. The court vacated the previous orders and directed the debtor to file an accounting and pay the proceeds to the unsecured creditors in accordance with the plan.