JPS Textiles (SDNY 1991)

Historical note: Ken Altman created the original Beneficial Owner Ballot/Master Ballot voting methodology for this case to enable JPS Textiles to file a pre-packaged bankruptcy plan of reorganization following Judge Abramson’s decision in The Southland case. In Southland, the Court raised issues concerning how votes should be cast by banks and brokers on behalf of their clients. The court order also required banks and brokers to disgorge the names of their beneficial owners in order to solicit the beneficial owners’ votes in the second Southland vote. Needing a way to deal with issues raised in the Abramson decision, the Beneficial Owner Ballot/Master Ballot voting methodology provided an approach that allowed pre-packs to continue to be filed and has continued to be used in virtually the same form since Ken Altman first created it.

Master Ballot – Old Subordinated Notes