MATTER OF ENVIRODYNE INDUSTRIES, INC.

No. 93-4070.

29 F.3d 301 (1994)

In the Matter of ENVIRODYNE INDUSTRIES, INCORPORATED, Debtor-Appellee. Appeal of UNOFFICIAL COMMITTEE OF 13½% NOTEHOLDERS OF ENVIRODYNE INDUSTRIES, INCORPORATED.

United States Court of Appeals, Seventh Circuit.

Decided July 12, 1994.


Attorney(s) appearing for the Case

Allan Sweig, Chicago, IL, Steven E. Greenbaum (argued), Stephen B. Selbst, Andrew Dash, Berlack, Israels & Liberman, New York City for appellant.

James E. Spiotto, Stephen L. Garcia, Chapman & Cutler, Chicago, IL, Edwin G. Schallert, Steven R. Gross, Debevoise & Plimpton, New York City, for intervenor-appellee.

Howard M. Hoffmann, David I. Herbst, Gregg E. Szilagyi, Michael A. Reiter, Allan S. Brilliant (argued), Holleb & Coff, Chicago, IL, Stephen M. Schuster, Envirodyne Industries, Incorporated, Oak Brook, IL, for debtor-appellee.

Before POSNER, Chief Judge, and RIPPLE and KANNE, Circuit Judges.


POSNER, Chief Judge.

This appeal arises out of an objection by creditors to a plan of reorganization filed by Envirodyne Industries, Inc., a Chapter 11 debtor. Envirodyne had three levels ("tranches," as they are called) of unsecured debt. One, the most senior, consisted of Senior Discount Notes. The plan called for the holders of these notes to receive notes of equivalent value in the reorganized firm. The next level consisted of 14% Senior Subordinated Debentures...

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