Cite as: 526 U. S. 434 (1999)
Opinion of the Court
Richard M. Bendix, Jr., argued the cause for respondent. With him on the brief were Malcolm M. Gaynor and Paul J. Gaynor.*
Justice Souter delivered the opinion of the Court.
The issue in this Chapter 11 reorganization case is whether a debtor's prebankruptcy equity holders may, over the objection of a senior class of impaired creditors, contribute new capital and receive ownership interests in the reorganized entity, when that opportunity is given exclusively to the old equity holders under a plan adopted without consideration of alternatives. We hold that old equity holders are disqualified from participating in such a "new value" transaction by the terms of 11 U. S. C. § 1129(b)(2)(B)(ii), which in such circumstances bars a junior interest holder's receipt of any property on account of his prior interest.
I
Petitioner, Bank of America National Trust and Savings Association (Bank),1 is the major creditor of respondent, 203 North LaSalle Street Partnership (Debtor or Partnership),
*Briefs of amici curiae urging reversal were filed for the American Bankers Association et al. by John J. Gill III, Michael F. Crotty, and Christopher E. Chenoweth; for the American College of Real Estate Lawyers by Robert M. Zinman and Christopher F. Graham; for the American Council of Life Insurance by James A. Pardo, Jr., David G. Epstein, Brian C. Walsh, and Phillip E. Stano; and for Ronald Mann et al. by Mr. Mann, pro se, Robert K. Rasmussen, and Alan Schwartz.
Briefs of amici curiae urging affirmance were filed for the National Association of Credit Management by Charles M. Tatelbaum and Elizabeth Warren; for National Small Business United et al. by Isaac M. Pachulski, K. John Shaffer, and Kenneth N. Klee; and for Bruce A. Markell, pro se.
1 Bank of America, Illinois, was the appellant in the case below. As a result of a merger, it is now known as Bank of America National Trust and Savings Association.
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