On January 31, 2013, the Bankruptcy Court for the District of Delaware confirmed the debtors’ proposed plan of reorganization in In re Indianapolis Downs, LLC:

• The court declined to “designate” or disallow the votes of several substantial creditors that had entered into a plan support or “lockup” agreement with the debtors after the bankruptcy filing.
• In a written decision, the Bankruptcy Court provided important guidance concerning the permissibility of post-petition plan support agreements entered into before the court approves a disclosure statement.
• In the past, some judges, including at least one judge sitting on the Delaware Bankruptcy Court, have held that such agreements constitute an impermissible solicitation of votes to approve a plan of reorganization in violation of section 1125(b) of the Bankruptcy Code which provides that an acceptance or rejection of a plan may not be solicited from a holder of a claim or interest after the commencement of a case unless the holder is provided with a court-approved disclosure statement.