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Equity Security Holders
An equity security holder is a holder of
an equity security of the debtor.
Examples of an equity security are a
share in a corporation, an interest of a
limited partner in a limited partnership,
or a right to purchase, sell, or subscribe
to a share, security, or interest of a share
in a corporation or an interest in a limited
partnership. 11 U.S.C §§ 101(16) ,
(17).
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An equity security holder may vote
on the plan of reorganization and may
file a proof of interest, rather than a
proof of claim. A proof of interest is
deemed filed for any interest that
appears in the debtor's schedules, unless
it is scheduled as disputed, contingent,
or unliquidated. 11 U.S.C. § 1111.
An
equity security holder whose interest is
not scheduled or scheduled as disputed,
contingent, or unliquidated must file a
proof of interest in order to be treated
as a creditor for purposes of voting on
the plan and distribution under it. Fed.
R. Bankr. P. 3003(c)(2).A properly filed
proof of interest supersedes any scheduling
of that interest. Fed. R. Bankr. P.
3003(c)(4). Generally, most of the provisions
that apply to proofs of claim, as
discussed above, are also applicable to
proofs of interest.
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