“Advantages of Toggle Plans in Chapter 11”

Aaron Lozano co-authored the Dallas Bar Association Headnotes article, “Advantages of Toggle Plans in Chapter 11.” The article examines the use of toggle plans in Chapter 11 bankruptcies, explaining how they allow debtors to pursue multiple restructuring paths—such as a reorganization, asset sale, or wind-down—within a single plan. It discusses how this approach can maximize value, reduce uncertainty, streamline the bankruptcy process, and provide flexibility as market conditions and stakeholder negotiations evolve.

Lozano explains that toggle plans help debtors preserve optionality while increasing the likelihood of a successful restructuring by allowing them to pursue the most value-maximizing outcome. He notes that, when carefully structured, toggle plans can reduce costs and litigation risk, satisfy lender requirements, and provide creditors with greater clarity while maintaining flexibility throughout the Chapter 11 process.