; and (3) the court finds, after notice and a hearing, that conversion is in the best interest of the creditors and the estate. . (e) (1) Section 726(a)(1) of title 11, United States Code, is amended by inserting after first, the following: in payment of any unpaid fees, costs, and expenses of a special trustee appointed under section 1186, and then . (2) Section 1129(a) of title 11, United States Code, is amended by inserting after paragraph (16) the following: (17) In a case under subchapter V, all payable fees, costs, and expenses of the special trustee have been paid or the plan provides for the payment of all such fees, costs, and expenses on the effective date of the plan. (18) In a case under subchapter V, confirmation of the plan is not likely to cause serious adverse effects on financial stability in the United States. . (f) Section 322(b)(2) of title 11, United States Code, is amended by striking The and inserting In cases under subchapter V, the United States trustee shall recommend to the court, and in all other cases, the . 3. Liquidation, reorganization, or recapitalization of a covered financial corporation Chapter 11 of title 11, United States Code, is amended by adding at the end the following: V Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation 1181. Inapplicability of other sections Sections 303 and 321(c) do not apply in a case under this subchapter concerning a covered financial corporation. Section 365 does not apply to a transfer under section 1185, 1187, or 1188. 1182. Definitions for this subchapter In this subchapter, the following definitions shall apply: (1) The term Board means the Board of Governors of the Federal Reserve System. (2) The term bridge company means a newly formed corporation to which property of the estate may be transferred under section 1185(a) and the equity securities of which may be transferred to a special trustee under section 1186(a). (3) The term capital structure debt means all unsecured debt of the debtor for borrowed money