---
title: "Finding the Exit: Navigating Administratively Insolvent Ch. 11 Cases"
date: 2025-11-05T10:50:00-05:00
author: Catherine Dailey
canonical_url: "https://www.kelleydrye.com/viewpoints/articles/finding-the-exit-navigating-administratively-insolvent-ch-11-cases"
section: Articles
---
# Finding the Exit: Navigating Administratively Insolvent Ch. 11 Cases

  November 3, 2025

 

 

 

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Kelley Drye Special Counsel [Scott Cargill ](https://www.kelleydrye.com/people/scott-cargill)co-authored the article, ​“Finding the Exit: Navigating Administratively Insolvent Ch. 11 Cases,” which was published in the *American Bankruptcy Institute Journal*.

The article examines the growing trend of debtors filing Chapter 11 cases without sufficient funds to pay administrative claims. The piece explores how recent bankruptcy court decisions—including *Steward Health Care*, *Party City*, and *Rite Aid*—are testing the limits of what constitutes creditor ​“consent” to reduced recoveries under §1129(a)(9)(A) of the Bankruptcy Code. Scott and co-author Bruce Nathan discuss how these rulings are reshaping expectations for administrative claimants and influencing strategies in today’s increasingly cash-strapped Chapter 11 landscape.

Read the full article [here](https://s3.amazonaws.com/cdn.kelleydrye.com/content/uploads/ABI-Journal-Nov.-2025-Article.pdf).

 

 

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