Burbank Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER I - OFFICERS AND ADMINISTRATION

-HEAD-
    Sec. 1109. Right to be heard

-STATUTE-
      (a) The Securities and Exchange Commission may raise and may
    appear and be heard on any issue in a case under this chapter, but
    the Securities and Exchange Commission may not appeal from any
    judgment, order, or decree entered in the case.
      (b) A party in interest, including the debtor, the trustee, a
    creditors' committee, an equity security holders' committee, a
    creditor, an equity security holder, or any indenture trustee, may
    raise and may appear and be heard on any issue in a case under this
    chapter.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2629.)


                       HISTORICAL AND REVISION NOTES                   

                          LEGISLATIVE STATEMENTS                      
      Section 1109 of the House amendment represents a compromise
    between comparable provisions in the House bill and Senate
    amendment. As previously discussed the section gives the Securities
    and Exchange Commission the right to appear and be heard and to
    raise any issue in a case under chapter 11; however, the Securities
    and Exchange Commission is not a party in interest and the
    Commission may not appeal from any judgment, order, or decree
    entered in the case. Under section 1109(b) a party in interest,
    including the debtor, the trustee, creditors committee, equity
    securities holders committee, a creditor, an equity security
    holder, or an indentured trustee, may raise and may appear and be
    heard on any issue in a case under chapter 11. Section 1109(c) of
    the Senate amendment has been moved to subchapter IV pertaining to
    Railroad Reorganizations.

                         SENATE REPORT NO. 95-989                     
      Subsection (a) provides, in unqualified terms, that any creditor,
    equity security holder, or an indenture trustee shall have the
    right to be heard as a party in interest under this chapter in
    person, by an attorney, or by a committee. It is derived from
    section 206 of chapter X ([former] 11 U.S.C. 606).
      Subsection (b) provides that the Securities and Exchange
    Commission may appear by filing an appearance in a case of a public
    company and may appear in other cases if authorized or requested by
    the court. As a party in interest in either case, the Commission
    may raise and be heard on any issue. The Commission may not appeal
    from a judgment, order, or decree in a case, but may participate in
    any appeal by any other party in interest. This is the present law
    under section 208 of chapter X ([former] 11 U.S.C. 608).

                          HOUSE REPORT NO. 95-595                      
      Section 1109 authorizes the Securities and Exchange Commission
    and any indenture trustee to intervene in the case at any time on
    any issue. They may raise an issue or may appear and be heard on an
    issue that is raised by someone else. The section, following
    current law, denies the right of appeal to the Securities and
    Exchange Commission. It does not, however, prevent the Commission
    from joining or participating in an appeal taken by a true party in
    interest. The Commission is merely prevented from initiating the
    appeal in any capacity.

-End-