Contents of a Chapter 11 Plan

Summary

This practice note discusses the mandatory and optional provisions of a Chapter 11 plan as well as the classification and treatment of claims and interests in a plan. In formulating and drafting a Chapter 11 plan, a number of considerations must be taken into account. The debtor must determine whether its business can be reorganized or should be sold while working within the framework of the Bankruptcy Code to achieve confirmation. Further, if the debtor believes a reorganization is achievable, the debtor must determine how to reposition its business for success and make sure that, whatever its ultimate business plan, it can obtain financing to support that plan. After addressing the business issues and developing a business plan (or determining to pursue a sale), the debtor then must turn to developing its Chapter 11 plan.