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As the number of liquidating chapter 11 cases increase across the country, meaningful amounts of funds may remain undistributed notwithstanding the best efforts and compliance with the terms of the confirmed plan by liquidating plan administrators and trustees of trusts formed under liquidating plans.

No provision in §1129 would be implicated by such provisions and such provisions do not appear to contravene §1123.

1998) (the liquidating trustee transferred unclaimed funds to court registry even though the reorganization plan did not provide for such disposal.

We have not uncovered procedures that bankruptcy clerks use to distinguish between chapter 7 and 13 unclaimed funds and chapter 11 funds held in bankruptcy court registries.

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Examples of cases in which undistributed funds might fall through the cracks of §347(b) include, but are certainly not limited to, (1) liquidating chapter 11 cases that do not involve a single entity that purchased substantially all of the debtor's assets, (2) liquidating chapter 11 cases that sell substantially all of the debtor's assets to one entity that itself is not in existence or in a position to accept the unclaimed funds five years from the date of the confirmation order, (3) liquidating chapter 11 cases in which the party entitled to a distribution rejects the distribution due to it because, , it has determined that it is not cost-effective to locate and make distribution to the parties beneficially entitled thereto, and (4) liquidating chapter 11 cases in which the debtor entity has been legally extinguished and the funds remaining on hand five years from the date of the confirmation order are the proceeds of litigation claims (and not the proceeds from the sale of the debtor's assets).

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