Debtors' Joint Chapter 11 Plan of Reorganization (Debt for Equity and Pot Plan)
Summary
This template proposed debtors' joint Chapter 11 plan of reorganization is for use by a medium to large size privately held Chapter 11 debtor in possession which commences a pre-negotiated bankruptcy case with its wholly owned subsidiaries. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This plan is a pre-negotiated (as opposed to a pre-packaged) plan of reorganization. In a pre-negotiated plan of reorganization, a debtor will have negotiated with its larger creditor constituents, most likely its pre-petition secured lenders who hold a first priority lien against all of the debtors' assets (and potentially other significant parties, such as the significant holders of equity in the debtor), as to the terms of the plan and, in particular, their treatment under the plan. The debtor and these creditors will enter into an agreement on the terms of a restructuring. As part of their agreement, the creditors will have agreed to support the ...