B25B, [Name of Attorney for Plan Proponent] Disclosure Statement, Dated [Insert Date]
The B25B form is used in the case of bankruptcy to explain detailed information about the rights of the creditors. Handling such a plan requires the involvement of a lawyer as some matters may not be very clear.
DownloadExtracted Text for Proper Search
B25B (Official Form 25B) (12/08)
United States Bankruptcy Court
__________________ District of _____________
In re , Case No. ____________________
Debtor \
Small Business Case under Chapter 11
[NAME OF PLAN PROPONENT]’S DISCLOSURE STATEMENT, DATED [INSERT DATE]
Table of Contents
[Insert when text is finalized]
B25B (Official Form 25B) (12/08) – Cont . 2
I.
INTRODUCTION
This is the disclosure statement (the “Disclosure Statement”) in the small business chapter 11
case of _____________ (the ADebtor @). This Disclosure Statement contains information about the
Debtor and describes the [insert name of plan] (the “Plan”) filed by [the Debtor] on [insert date]. A
full copy of the Plan is attached to this Disclosure Statement as Exhibit A. Your rights may be
affected. You should read the Plan and this Disc losure Statement carefully and discuss them with
your attorney. If you do not have an attorney, you may wish to consult \
one.
The proposed distributions under the Plan are discussed at pages __-__ o\
f this Disclosure
Statement. [General unsecured creditors are classi fied in Class __, and will receive a distribution of
___ % of their allowed claims, to be distributed as follows _________.]
A. Purpose of This Document
This Disclosure Statement describes:
! The Debtor and significant events during the bankruptcy case,
! How the Plan proposes to treat claims or equity interests of the type you hold ( i.e., what
you will receive on your claim or equity interest if the plan is confirmed),
! Who can vote on or object to the Plan,
! What factors the Bankruptcy Court (the “Court”) will consider when dec\
iding whether
to confirm the Plan,
! Why [the Proponent] believes the Plan is feasible, and how the treatment of your claim
or equity interest under the Plan compares to what you would receive on your claim or
equity interest in liquidation, and
● The effect of confirmation of the Plan.
Be sure to read the Plan as well as the Disclosure Statement. This Disclosure Statement
describes the Plan, but it is the Plan itself that will, if confirmed, establish your rights.
B. Deadlines for Voting and Objecting; Date of Plan Confirmation Hearing
The Court has not yet confirmed the Plan described in this Disclosure Statement. This section
describes the procedures pursuant to which the Plan will or will not be \
confirmed.
1. Time and Place of the Hearing to [Finally Approve This Disclosure Statem\
ent
and] Confirm the Plan
The hearing at which the Court will determine whether to [finally approve this Disclosure
Statement and] confirm the Plan will take place on
[insert date] , at [insert time], in Courtroom ___ ,
at the [Insert Courthouse Name, and Full C ourt Address, City, State, Zip Code].
2. Deadline For Voting to Accept or Reject the Plan
B25B (Official Form 25B) (12/08) – Cont . 3
If you are entitled to vote to accept or reject the plan, vote on the en\
closed ballot and return the
ballot in the enclosed envelope to [insert address]
. See section IV.A. below for a discussion of voting
eligibility requirements.
Your ballot must be received by [insert date] or it will not be counted.
3. Deadline For Objecting to the [Adequacy of Disclosure and] Confirmation of
the Plan
Objections to [this Disclosure Statement or to] the confirmation of the Plan must be filed with
the Court and served upon [insert entities] by [insert date].
4. Identity of Person to Contact for More Information
If you want additional information about the Plan, you should contact [insert name and address
of representative of plan proponent].
C. Disclaimer
The Court has [conditionally] approved this Disclosure Statement as cont\
aining adequate
information to enable parties affected by the Plan to make an informed judgment about its terms.
The Court has not yet determined whether the Plan meets the legal requirements for confirmation,
and the fact that the Court has approved this Disclosure Statement does not constitute an
endorsement of the Plan by the Court, or a recommendation that it be acc\
epted. [The Court
=s
approval of this Disclosure Statement is subject to final approval at the hearing on confirmation of
the Plan. Objections to the adequacy of this Disclosure Statement may b\
e filed until ______.]
II. BACKGROUND
A. Description and History of the Debtor =s Business
The Debtor is a [corporation, partnership, etc.]. Since [insert year o\
perations commenced], the
Debtor has been in the business of _________. [Describe the Debtor’\
s business].
B. Insiders of the Debtor
[Insert a detailed list of the names of Debtor =s insiders as defined in §101(31) of the United
States Bankruptcy Code (the “Code”) and their relati onship to the Debtor. For each insider, list all
compensation paid by the Debtor or its affiliates to that person or entity during the two years prior to
the commencement of the Debtor’s bankruptcy case, as well as compensation paid during the
pendency of this chapter 11 case.]
C. Management of the Debtor Before and During the Bankruptcy
During the two years prior to the date on which the bankruptcy petition \
was filed, the officers,
directors, managers or other persons in control of the Debtor (collectively the “\
Managers”) were [List
the Managers of the Debtor prior to the petition date].
B25B (Official Form 25B) (12/08) – Cont . 4
The Managers of the Debtor during the Debtor’s chapter 11 case have b\
een: [List Managers of the
Debtor during the Debtor’s chapter 11 case.]
After the effective date of the order confirming the Plan, the directors, officers, and voting trustees
of the Debtor, any affiliate of the Debtor participating in a joint Plan\
with the Debtor, or successor of the
Debtor under the Plan (collectively the “Post Confirmation Managers”), will be: [List Post Confirmation
Managers of the Debtor.] The responsibilities and compensation of these Post Confirmation Managers
are described in section __ of this Disclosure Statement.
D.
Events Leading to Chapter 11 Filing
[Describe the events that led to the commencement of the Debtor’s bankruptcy case.]
E. Significant Events During the Bankruptcy Case
[Describe significant events during the Debtor’s bankruptcy case:
• Describe any asset sales outside the ordinary course of business, debtor in possession
financing, or cash collateral orders.
• Identify the professionals approved by the court.
• Describe any adversary proceedings that have been filed or other signifi\
cant litigation that
has occurred (including contested claim disallowance proceedings), and any other
significant legal or administrative proceedings that are pending or have been pending
during the case in a forum other than the Court.
• Describe any steps taken to improve operations and profitability of the Debtor.
• Describe other events as appropriate.]
F. Projected Recovery of Avoidable Transf ers [Choose the option that applies]
[Option 1 – If the Debtor does not intend to pursue avoidance actions\
]
The Debtor does not intend to pursue preference, fraudulent conveyance, \
or other avoidance
actions.
[Option 2 – If the Debtor intends to pursue avoidance actions]
The Debtor estimates that up to $____________ may be realized from the recovery of fraudulent,
preferential or other avoidable transfers. While the results of litigation cannot be predicted with certainty
and it is possible that other causes of action may be identified, the following is a summary of the
preference, fraudulent conveyance and other avoidance actions filed or e\
xpected to be filed in this case:
Transaction Defendant Amount Claimed
[Option 3 – If the Debtor does not yet know whether it intends to pursue avoidance actions]
B25B (Official Form 25B) (12/08) – Cont .
5
The Debtor has not yet completed its investigation with regard to prepetition transactions. If you\
received a payment or other transfer within 90 days of the bankruptcy, or other transfer avoidable under
the Code, the Debtor may seek to avoid such transfer.
G. Claims Objections
Except to the extent that a claim is already allowed pursuant to a final non-appealable order, the
Debtor reserves the right to object to claims. Th erefore, even if your claim is allowed for voting
purposes, you may not be entitled to a distribution if an objection to your claim is later upheld. The
procedures for resolving disputed claims are set forth in Article V of the Plan.
H. Current and Historical Financial Conditions
The identity and fair market value of the estate =s assets are listed in Exhibit B. [Identify source
and basis of valuation.]
The Debtor= s most recent financial statements [if any] issued before bankruptcy, each of which
was filed with the Court, are set forth in Exhibit C.
[The most recent post-petition operating report filed since the commencement of the Debtor’s
bankruptcy case are set forth in Exhibit D.] [A summary of the Debtor’s periodic operating reports
filed since the commencement of the Debtor’s bankruptcy case is set forth in Exhibit D.]
III. SUMMARY OF THE PLAN OF REORGANIZATION AND TREATMENT OF
CLAIMS AND EQUITY INTERESTS
A. What is the Purpose of the Plan of Reorganization?
As required by the Code, the Plan places claims and equity interests in various classes and
describes the treatment each class will receive. The Pl an also states whether each class of claims or
equity interests is impaired or unimpaired. If the Plan is confirmed, your recovery will be limited to
the amount provided by the Plan.
B. Unclassified Claims
Certain types of claims are automatically entitled to specific treatment under the Code. They
are not considered impaired, and holders of such claims do not vote on the Plan. They may, however,
object if, in their view, their treatment under the Plan does not comply with that required by the Code.
As such, the Plan Proponent has not placed the following claims in any class:
1. Administrative Expenses
Administrative expenses are costs or expenses of administering the Debtor =s chapter 11 case
which are allowed under § 507(a)(2) of the Code. Administrative expenses also include the value of
any goods sold to the Debtor in the ordinary course of business and rece\
ived within 20 days before the
date of the bankruptcy petition. The Code requires that all administrative expenses be paid on the
effective date of the Plan, unless a particular claimant agrees to a different treatment.
B25B (Official Form 25B) (12/08) – Cont . 6
The following chart lists the Debtor
=s estimated administrative expenses, and their proposed
treatment under the Plan:
Type
Estimated
Amount Owed
Proposed Treatment
Expenses Arising in the Ordinary
Course of Business After the
Petition Date
Paid in full on the effective date of the Plan, or
according to terms of obligation if later
The Value of Goods Received in
the Ordinary Course of Business
Within 20 Days Before the Petition
Date
Paid in full on the effective date of the Plan, or
according to terms of obligation if later
Professional Fees, as approved by
the Court.
Paid in full on the effective date of the Plan, or
according to separate written agreement, or
according to court order if such fees have not
been approved by the Court on the effective date
of the Plan
Clerk =s Office Fees
Paid in full on the effective date of the Plan
Other administrative expenses
Paid in full on the effective date of the Plan or
according to separate written agreement
Office of the U.S. Trustee Fees
Paid in full on the effective date of the Plan
TOTAL
2. Priority Tax Claims
Priority tax claims are unsecured income, employment, and other taxes described by
§ 507(a)(8) of the Code. Unless the holder of such a § 507(a)(8) priority tax claim agrees otherwise, it
must receive the present value of such claim, in regular installments paid over a period not exceeding 5
years from the order of relief.
B25B (Official Form 25B) (12/08) – Cont . 7
The following chart lists the Debtor
=s estimated § 507(a)(8) priority tax claims and their
proposed treatment under the Plan:
Description
(name and type of tax)
Estimated
Amount
Owed
Date of
Assessment
Treatment
Pmt interval
[Monthly] payment
Begin date
End date
Interest Rate %
Total Payout Amount
=
=
=
=
=
= $
Pmt interval
[Monthly] payment
Begin date
End date
Interest Rate %
Total Payout Amount
=
=
=
=
=
= $
C. Classes of Claims and Equity Interests
The following are the classes set forth in the Plan, and the proposed tr\
eatment that they will
receive under the Plan:
1. Classes of Secured Claims
Allowed Secured Claims are claims secured by property of the Debtor =s bankruptcy estate (or
that are subject to setoff) to the extent allowed as secured claims under § 506 of the Code. If the value
of the collateral or setoffs securing the creditor’s claim is less than the amount of the creditor’s
allowed claim, the deficiency will [be classified as a general unsecured claim].
B25B (Official Form 25B) (12/08) – Cont . 8
The following chart lists all classes containing Debtor
=s secured prepetition claims and their
proposed treatment under the Plan:
Class #
Description
Insider?
(Yes or
No)
Impairment
Treatment
Secured claim of:
Name =
Collateral description =
Allowed Secured Amount =
$___________
Priority of lien =
Principal owed =
$___________
Pre-pet. arrearage =
$___________
Total claim =
$___________
[State whether
impaired or
unimpaired]
[Monthly] Pmt
Pmts Begin
Pmts End
[Balloon pmt]
Interest rate %
Treatment of
Lien
[Additional
payment
required to cure
defaults]
=
=
=
=
=
=
=
Secured claim of:
Name =
Collateral description =
Allowed Secured Amount =
$___________
Priority of lien =
Principal owed =
$___________
Pre-pet. arrearage =
$___________
Total claim =
$___________
[State whether
impaired or
unimpaired]
Monthly Pmt
Pmts Begin
Pmts End
[Balloon pmt]
Interest rate %
Treatment of
Lien
[Additional
payment
required to cure
defaults]
=
=
=
=
=
=
=
2. Classes of Priority Unsecured Claims
Certain priority claims that are referred to in §§ 507(a)(1), (4), (5), (6), a\
nd (7) of the Code are
required to be placed in classes. The Code requires that each holder of\
such a claim receive cash on
the effective date of the Plan equal to the allowed amount of such claim. However, a class of holders
of such claims may vote to accept different treatment.
B25B (Official Form 25B) (12/08) – Cont . 9
The following chart lists all classes containing claims under §§ 507(a)(1), (4), (5), (6), and
(a)(7) of the Code and their proposed treatment under the Plan:
Class #
Description
Impairment
Treatment
Priority unsecured claim pursuant to
Section [insert]
Total amt of claims =
$
[State whether
impaired or
unimpaired]
Priority unsecured claim pursuant to
Section [insert]
Total amt of claims =
$
[State whether
impaired or
unimpaired]
3. Class[es]of General Unsecured Claims
General unsecured claims are not secured by property of the estate and are not entitled to
priority under § 507(a) of the Code. [Insert description of §1122(b) convenience class if applicable.]
The following chart identifies the Plan =s proposed treatment of Class[es] __ through __, which
contain general unsecured claims against the Debtor:
Class #
Description
Impairment
Treatment
[1122(b) Convenience
Class]
[State whether
impaired or
unimpaired]
[Insert proposed
treatment, such as
“Paid in full in cash
on effective date of
the Plan or when due
under contract or
applicable
nonbankruptcy law”]
General Unsecured
Class
[State whether
impaired or
unimpaired]
Monthly Pmt
Pmts Begin
Pmts End
[Balloon pmt]
Interest rate % from
[date]
Estimated percent of
claim paid
=
=
=
=
=
=
4. Class[es] of Equity Interest Holders
B25B (Official Form 25B) (12/08) – Cont . 10
Equity interest holders are parties who hold an ownership interest (
i.e., equity interest) in the
Debtor. In a corporation, entities holding preferred or common stock are equity interest holders. In a
partnership, equity interest holders include both general and limited partners. In a limited liability
company (“LLC”), the equity interest holders are the members. Finally, with respect to an individual
who is a debtor, the Debtor is the equity interest holder.
The following chart sets forth the Plan =s proposed treatment of the class[es] of equity interest
holders: [There may be more than one class of equity interests in, for example, a partnership case, or a
case where the prepetition debtor had issued multiple classes of stock.]
Class #
Description
Impairment
Treatment
Equity interest
holders
[State whether
impaired or
unimpaired]
D. Means of Implementing the Plan
1. Source of Payments
Payments and distributions under the Plan will be funded by the following:
[Describe the source of funds for payments under the Plan.]
2. Post-confirmation Management
The Post-Confirmation Managers of the Debtor, and their compensation, shall be as follows:
Name
Affiliations
Insider (yes or
no)?
Position
Compensation
E. Risk Factors
The proposed Plan has the following risks:
[List all risk factors that might affect the Debtor’s ability to make payments and other
distributions required under the Plan.]
F. Executory Contracts and Unexpired Leases
B25B (Official Form 25B) (12/08) – Cont . 11
The Plan, in Exhibit 5.1, lists all executory contracts and unexpired le\
ases that the Debtor will
assume under the Plan. Assumption means that the Debtor has elected to continue to perform the
obligations under such contracts and unexpired leases, and to cure defau\
lts of the type that must be
cured under the Code, if any. Exhibit 5.1 also lists how the Debtor wil\
l cure and compensate the other
party to such contract or lease for any such defaults.
If you object to the assumption of your unexpired lease or executory contract, the proposed
cure of any defaults, or the adequacy of assurance of performance, you must file and serve your
objection to the Plan within the deadline for objecti ng to the confirmation of the Plan, unless the Court
has set an earlier time.
All executory contracts and unexpired leases that are not listed in Exhi\
bit 5.1 will be rejected
under the Plan. Consult your adviser or attorney for more specific information about particular
contracts or leases.
If you object to the rejection of your contract or lease, you must file and serve your objection to
the Plan within the deadline for objecting to the confirmation of the Plan.
[ The Deadline for Filing a Proof of Claim Based on a Claim Arising from t\
he Rejection of a
Lease or Contract Is
. Any claim based on the rejection of a contract or lease will be barred if
the proof of claim is not timely filed, unless the Court orders otherwise.]
G. Tax Consequences of Plan
Creditors and Equity Interest Holders Concerne d with How the Plan May Affect Their Tax
Liability Should Consult with Their Own Accountants, Attorneys, And/Or A\
dvisors.
The following are the anticipated tax consequences of the Plan: [List the following general
consequences as a minimum: (1)Tax consequences to the Debtor of the Plan; (2) General tax
consequences on creditors of any discharge, and the general tax conseque\
nces of receipt of plan
consideration after confirmation.]
IV. CONFIRMATION REQUIREMENTS AND PROCEDURES
To be confirmable, the Plan must meet the requirements listed in §§ 1129(a) or (b) of the Code.
These include the requirements that: the Plan must be proposed in good faith; at least one impaired
class of claims must accept the plan, without counting votes of insiders; the Plan must distribute to
each creditor and equity interest holder at least as much as the creditor or equity interest holder would
receive in a chapter 7 liquidation case, unless the creditor or equity i\
nterest holder votes to accept the
Plan; and the Plan must be feasible. These requirements are
not the only requirements listed in § 1129,
and they are not the only requirements for confirmation.
B25B (Official Form 25B) (12/08) – Cont . 12
A.
Who May Vote or Object
Any party in interest may object to the confirmati on of the Plan if the party believes that the
requirements for confirmation are not met.
Many parties in interest, however, are not entitled to vote to accept or\
reject the Plan. A
creditor or equity interest holder has a right to vote for or against th\
e Plan only if that creditor or equity
interest holder has a claim or equity interest that is both (1) allowed or allowed for voting pur\
poses and
(2) impaired.
In this case, the Plan Proponent believes that classes are impaired and that holders of
claims in each of these classes are therefore entitled to vote to accept or r\
eject the Plan. The Plan
Proponent believes that classes
are unimpaired and that holders of claims in each of these
classes, therefore, do not have the right to vote to accept or reject th\
e Plan.
1. What Is an Allowed Claim or an Allowed Equity Interest?
Only a creditor or equity interest holder with an allowed claim or an allowed equity interest has
the right to vote on the Plan. Generally, a claim or equity interest is allowed if either (1) the Debtor
has scheduled the claim on the Debtor =s schedules, unless the claim has been scheduled as disputed,
contingent, or unliquidated, or (2) the creditor has f iled a proof of claim or equity interest, unless an
objection has been filed to such proof of claim or equ ity interest. When a claim or equity interest is
not allowed, the creditor or equity interest holder holding the claim or equity interest cannot vote
unless the Court, after notice and hearing, either overrules the objecti\
on or allows the claim or equity
interest for voting purposes pursuant to Rule 3018(a) of the Federal Rules of Bankruptcy Procedure.
The deadline for filing a proof of claim in this case was .
[If applicable – The deadline for filing objections to claims is_____\
_.]
2. What Is an Impaired Claim or Impaired Equity Interest?
As noted above, the holder of an allowed claim or equity interest has the right to vote only if it
is in a class that is impaired under the Plan. As provided in § 1124 of the Code, a class is consi\
dered
impaired if the Plan alters the legal, equitable, or contractual rights of the members of that class.
3. Who is Not Entitled to Vote
The holders of the following five types of claims and equity interests are not entitled to vote:
• holders of claims and equity interests that have been disallowed by an order of the
Court;
• holders of other claims or equity interests that are not “allowed claims” or “allowed
equity interests” (as discussed above), unless they have been “a\
llowed” for voting
purposes.
• holders of claims or equity interests in unimpaired classes;
B25B (Official Form 25B) (12/08) – Cont . 13
•
holders of claims entitled to priority pursuant to §§ 507(a)(2), (a)(3), a\
nd (a)(8) of the
Code; and
• holders of claims or equity interests in classes that do not receive or retain any value\
under the Plan;
• administrative expenses.
Even If You Are Not Entitled to Vote on the Plan, You Have a Right to Object to the Confirmation
of the Plan [and to the Adequacy of the Disclosure Statement].
4. Who Can Vote in More Than One Class
A creditor whose claim has been allowed in part as a secured claim and in part as an unsecured
claim, or who otherwise hold claims in multiple classes, is entitled to accept or reject a Plan in each
capacity, and should cast one ballot for each claim.
B. Votes Necessary to Confirm the Plan
If impaired classes exist, the Court cannot confirm the Plan unless (1) at least one impaired
class of creditors has accepted the Plan without counting the votes of any insiders within that class, and
(2) all impaired classes have voted to accept the Plan, unless the Plan is eligibl\
e to be confirmed by
A cram down @ on non-accepting classes, as discussed later in Section [B.2.].
1. Votes Necessary for a Class to Accept the Plan
A class of claims accepts the Plan if both of the following occur: (1) the holders of more than
one-half (1/2) of the allowed claims in the class, who vote, cast their votes to accept the Plan, and (2)\
the holders of at least two-thirds (2/3) in dollar am ount of the allowed claims in the class, who vote,
cast their votes to accept the Plan.
A class of equity interests accepts the Plan if th e holders of at least two-thirds (2/3) in amount
of the allowed equity interests in the class, who vote, cast their votes\
to accept the Plan.
2. Treatment of Nonaccepting Classes
Even if one or more impaired classes reject the Plan, the Court may nonetheless confirm the
Plan if the nonaccepting classes are treated in the manner prescribed by § 1129(b) of the Code. A plan
that binds nonaccepting classes is commonly referred to as a Acram down @ plan. The Code allows the
Plan to bind nonaccepting classes of claims or equity interests if it meets all the requirements for
consensual confirmation except the voting requirements of § 1129(a)(8) of the Code, does not
A discriminate unfairly, @ and is Afair and equitable @ toward each impaired class that has not voted to
accept the Plan.
You should consult your own attorney if a Acramdown @ confirmation will affect your claim or equity
interest, as the variations on this general rule are numerous and compl\
ex.
B25B (Official Form 25B) (12/08) – Cont . 14
C.
Liquidation Analysis
To confirm the Plan, the Court must find that all creditors and equity interest holders who do
not accept the Plan will receive at least as much under the Plan as such claim and equity interest
holders would receive in a chapter 7 liquidation. A li quidation analysis is attached to this Disclosure
Statement as Exhibit E.
D. Feasibility
The Court must find that confirmation of the Plan is not likely to be followed by the
liquidation, or the need for further financial reor ganization, of the Debtor or any successor to the
Debtor, unless such liquidation or reorganization is proposed in the Pla\
n.
1. Ability to Initially Fund Plan
The Plan Proponent believes that the Debtor will have enough cash on han\
d on the effective
date of the Plan to pay all the claims and expenses that are entitled to be paid on that date. Tables
showing the amount of cash on hand on the effective date of the Plan, and the sources of that cash are
attached to this disclosure statement as Exhibit F.
2. Ability to Make Future Plan Payments And Operate Without Further
Reorganization
The Plan Proponent must also show that it will have enough cash over the life of the Plan to \
make the required Plan payments.
The Plan Proponent has provided projected financ ial information. Those projections are listed
in Exhibit G.
The Plan Proponent’s financial projections show that the Debtor will have an aggregate annual
average cash flow, after paying operating expenses and post-confirmation taxes, of $ . The final
Plan payment is expected to be paid on
.
[Summarize the numerical projections, and highlight any assumptions that are not in accord with past
experience. Explain why such assumptions should now be made.]
You Should Consult with Your Accountant or other Financial Advisor If You Have Any
Questions Pertaining to These Projections.
V. EFFECT OF CONFIRMATION OF PLAN
A. DISCHARGE OF DEBTOR [If the Debtor is not entitled to discharge pursuant to 11
U.S.C. § 1141(d)(3) change this heading to “ NO DISCHARGE OF DEBTOR.”]
[Option 1 – If Debtor is an individual and § 1141(d)(3) is not\
applicable]
B25B (Official Form 25B) (12/08) – Cont . 15
Discharge. Confirmation of the Plan does not discharge any debt provided for in the Plan until
the court grants a discharge on completion of all payments under the Plan, or as otherwise provided in §
1141(d)(5) of the Code. Debtor will not be discharg ed from any debt excepted from discharge under §
523 of the Code, except as provided in Rule 4007(c) of the Federal Rul\
es of Bankruptcy Procedure.
[Option 2 -- If the Debtor is a partnership and § 1141(d)(3) of t\
he Code is not
applicable]
Discharge. On the effective date of the Plan, the Debtor shall be discharged from any debt that
arose before confirmation of the Plan, subject to the occurrence of the effective date, to the extent
specified in § 1141(d)(1)(A) of the Code. However, th e Debtor shall not be discharged from any debt
imposed by the Plan. After the effective date of th e Plan your claims against the Debtor will be limited
to the debts imposed by the Plan.
[Option 3 -- If the Debtor is a corporation and § 1141(d)(3) is n\
ot applicable]
Discharge. On the effective date of the Plan, the Debtor shall be discharged from\
any debt that
arose before confirmation of the Plan, subject to the occurrence of the effective date, to the extent
specified in § 1141(d)(1)(A) of the Code, except that the Debtor shall not be discharged of any debt (i)
imposed by the Plan, (ii) of a kind specified in § 1141(d)(6)(A) if a timely complaint was filed in
accordance with Rule 4007(c) of the Federal Rules of Bankruptcy Proced\
ure, or (iii) of a kind
specified in § 1141(d)(6)(B). After the effective date of the Plan your claims against the Debtor will
be limited to the debts described in clauses (i) through (iii) of the prec\
eding sentence.
[Option 4 – If § 1141(d)(3) is applicable]
No Discharge. In accordance with § 1141(d)(3) of the Code, the Debtor will not\
receive any
discharge of debt in this bankruptcy case.
B. Modification of Plan
The Plan Proponent may modify the Plan at any time before confirmation of the Plan.
However, the Court may require a new disclosure statement and/or revoting on the Plan.
[If the Debtor is not an individual, add the following: AThe Plan Proponent may also seek to modify the
Plan at any time after confirmation only if (1) the Plan has not been substantially consummated and (2)
the Court authorizes the proposed modifications after notice and a hearing. @]
[If the Debtor is an individual, add the following: A Upon request of the Debtor, the United
States trustee, or the holder of an allowed unsecured claim, the Plan may be modified at any time after
confirmation of the Plan but before the completion of payments under the Plan, to (1) increase or
reduce the amount of payments under the Plan on claims of a particular class, (2) extend or reduce the
time period for such payments, or (3) alter the amount of distribution to a creditor whose claim is
provided for by the Plan to the extent necessary to take account of any \
payment of the claim made
other than under the Plan. @]
C. Final Decree
B25B (Official Form 25B) (12/08) – Cont . 16
Once the estate has been fully administered, as provided in Rule 3022 of the Federal Rules of
Bankruptcy Procedure, the Plan Proponent, or such othe r party as the Court shall designate in the Plan
Confirmation Order, shall file a motion with the C ourt to obtain a final decree to close the case.
Alternatively, the Court may enter such a final decree on its own motion.
VI. OTHER PLAN PROVISIONS
[Insert other provisions here, as necessary and appropriate.]
____________________________________________
[Signature of the Plan Proponent]
____________________________________________
[Signature of the Attorney for the Plan Proponent]
B25B (Official Form 25B) (12/08) – Cont . 17
EXHIBITS
B25B (Official Form 25B) (12/08) – Cont . 18
Exhibit A
B Copy of Proposed Plan of Reorganization
B25B (Official Form 25B) (12/08) – Cont . 19
Exhibit B
B Identity and Value of Material Assets of Debtor
B25B (Official Form 25B) (12/08) – Cont . 20
Exhibit C B Prepetition Financial Statements
(to be taken from those filed with the court)
B25B (Official Form 25B) (12/08) – Cont . 21
Exhibit D
B [Most Recently Filed Postpetition Operati ng Report][Summary of Postpetition Operating
Reports]
B25B (Official Form 25B) (12/08) – Cont . 22
Exhibit E – Liquidation Analysis
Plan Proponent’s Estimated Liquidation Value of Assets
Assets
a. Cash on hand
b. Accounts receivable
c. Inventory
d. Office furniture & equipment
e. Machinery & equipment
f. Automobiles
g. Building & Land
h. Customer list
i. Investment property (such as stocks, bonds or other
financial assets)
j. Lawsuits or other claims against third-parties
k. Other intangibles (such as avoiding powers actions)
Total Assets at Liquidation Value
Less:
Secured creditors= recoveries
Less:
Chapter 7 trustee fees and expenses
Less:
Chapter 11 administrative expenses
Less:
Priority claims, excluding administrative expense claims
[Less:
Debtor=s claimed exemptions]
(1) Balance for unsecured claims
(2) Total dollar amount of unsecured claims
Percentage of Claims Which Unsecured Creditors Would
Receive Or Retain in a Chapter 7 Liquidation :
Percentage of Claims Which Unsecured Creditors Will
Receive or Retain under the Plan:
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
____% [Divide (1) by (2)]
____%
B25B (Official Form 25B) (12/08) – Cont . 23
Exhibit F
– Cash on hand on the effective date of the Plan
Cash on hand on effective date of the Plan :
Less B
Amount of administrative expenses payable on effective date of
the Plan
Amount of statutory costs and charges
Amount of cure payments for executory contracts
Other Plan Payments due on effective date of the Plan
Balance after paying these amounts...............
$
-
-
-
-
$
The sources of the cash Debtor will have on hand by the effective date of the Plan are estimated as
follows:
$
Cash in Debtor =s bank account now
+
Additional cash Debtor will accumulate from
net earnings between now and effective date of the Plan [state the
basis for such projections]
+
Borrowing [separately state terms of repayment]
+
Capital Contributions
+
Other
$
Total [This number should match “cash on hand” figure noted
above
B25B (Official Form 25B) (12/08) – Cont . 24
Exhibit G B Projections of Cash Flow and
Earnings for Post-Confirmation Period
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