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Reorganization Plan in Chapter 11
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Flashcards
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Provisions for Equity Security Holders
Outlining the treatment of existing equity holders and the distribution of new equity securities.
Treatment of Claims and Interests
Specification of how each class of claims and interests will be treated under the plan.
Means of Implementation
Describing the methods of effectuating the plan, including any new financing arrangements.
Classification of Claims and Interests
Classifying claims and equity interests into distinct classes with similar legal rights.
Provisions for Future Litigation Claims
Addressing how claims that might arise after the plan is confirmed will be handled.
Injunctions and Releases
Addressing any legal injunctions or releases that protect the debtor from certain lawsuits post-reorganization.
Equality of Distribution
Ensuring that similarly-situated creditors receive equivalent treatment under the plan.
Provisions for Management
Outlining the management structure and operational plan post-reorganization.
Provisions for Executory Contracts
Decision to assume, reject, or assign executory contracts and unexpired leases.
Environmental Liabilities
Handling of environmental obligations and liabilities within the reorganization plan.
New Equity Interests
Defining the manner in which new equity will be distributed or sold as part of the reorganization plan.
Retention of Jurisdiction
Requesting the bankruptcy court to retain jurisdiction over certain matters following plan confirmation.
Best Interests of Creditors Test
Assurance that all creditors will receive at least as much under the plan as they would in a Chapter 7 liquidation.
Discharge of Debts
Explanation of how debts will be discharged under the reorganization plan.
Legal Basis for Plan
Identification of the specific provisions of the bankruptcy code under which the plan is proposed.
Feasibility of the Plan
Demonstration that the plan is not likely to be followed by liquidation or further financial reorganization.
Acceptance by Creditors
Achieving the requisite acceptance of the plan by the various classes of creditors.
Exit Financing
Securing funding that will support the business's operations and satisfy the plan's provisions after emerging from Chapter 11.
Corporate Governance Modifications
Details about changes to bylaws, articles of incorporation, or other governance documents post-reorganization.
Plan Compliance
Following all the required procedures and regulations as set forth in the Bankruptcy Code and Case Law.
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