UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY In re: , Case No. Hon. Debtor. Chapter 11 (Small Business) , U.S.B.J. SMALL BUSINESS DEBTOR'S COMBINED PLAN OF REORGANIZATION [OR LIQUIDATION] AND DISCLOSURE STATEMENT This Combined Plan of Reorganization and Disclosure Statement is presented to you to inform you of the proposed Plan for restructuring the debt [or liquidating the assets] of [Debtor], and to seek your vote to accept the Plan. You are encouraged to carefully review the full text of this document, including all exhibits and attachments, before deciding how to vote on the Plan. To assist you in your review, please note that a list of definitions and a section of frequently asked questions appear at the end of this document. IN ADDITION TO CASTING YOUR VOTE TO ACCEPT OR REJECT THE PLAN, YOU MAY OBJECT TO THE ADEQUACY OF THE DISCLOSURES MADE IN THIS DOCUMENT, OR YOU MAY OBJECT TO THE TERMS OF THE PROPOSED PLAN. IF YOU WISH TO OBJECT TO THE ADEQUACY OF THE DISCLOSURES OR TO THE TERMS OF THE PROPOSED PLAN, YOU MUST DO SO BY [OBJECTION DATE/TIME]. YOUR BALLOT STATING HOW YOU ARE VOTING ON THE PLAN MUST BE RETURNED BY [DEADLINE]. THE BALLOT MUST BE MAILED TO THE FOLLOWING ADDRESS: [DEBTOR'S COUNSEL'S ADDRESS] A HEARING ON THE CONFIRMATION OF THE PLAN IS SCHEDULED FOR [HEARING DATE/TIME] IN COURTROOM No._____ AT THE [INSERT COURTHOUSE NAME AND FULL COURT ADRESS, CITY, STATE, ZIP CODE] Your rights may be affected by this Combined Plan and Disclosure Statement. You should consider discussing this document with an attorney. [DATE] [COUNSEL FOR DEBTOR] [CONTACT INFORMATION FOR COUNSEL FOR DEBTOR] American LegalNet, Inc. www.FormsWorkFlow.com TABLE OF CONTENTS [Insert Table of Contents pursuant to D.N.J. LBR 3016-1(c)(2)] 2 American LegalNet, Inc. www.FormsWorkFlow.com SUMMARY OF THE PLAN AND DISTRIBUTIONS TO CREDITORS [A concise summary of the Plan, describing with particularity the treatment of each class of Creditors and the source of funding for the Plan, should be stated here.] 3 American LegalNet, Inc. www.FormsWorkFlow.com ARTICLE 1 BACKGROUND OF THE DEBTOR 1.1. Filing of the Debtor's Chapter 11 Case. On [the Petition Date], the Debtor filed a voluntary petition for relief under the Bankruptcy Code. The Chapter 11 case is pending in the Bankruptcy Court in (Camden)(Newark)(Trenton), New Jersey. 1.2. Nature of the Debtor's Business. [Describe the Debtor's Business here.] 1.3. Legal Structure and Ownership. [Describe the Debtor's legal structure and ownership here.] 1.4. Debtor's Assets. [Detail the identity and fair market value of the estate's assets either in this section or in an attached Exhibit. Identify the source and basis for valuation.] 1.5. Debtor's Liabilities. [Identify the secured Claims, naming the collateral for such debts, priority Claims and unsecured Claims against the estate either in this section or in an attached Exhibit.] 1.6. Current and Historical Financial Conditions. [The Debtor's relevant financial data, including the Debtor's historical and projected financial performance, should be summarized here, with reference to attached Exhibits like the Debtor's most recent financial statements, if any, a summary of the Debtor's periodic operating reports filed since the commencement of the Debtor's bankruptcy case, etc.] 1.7. Events Leading to the Filing of the Bankruptcy Case. [Describe what problems compelled the filing of the Chapter 11 petition and, if applicable, how the Debtor has cured those problems for its successful rehabilitation] 4 American LegalNet, Inc. www.FormsWorkFlow.com 1.8. Significant Events During the Bankruptcy Case. [Describe significant events during the Debtor's bankruptcy case, which may include: Any asset sales outside the ordinary course of business, debtor-inpossession financing, or cash collateral orders. The identity of professionals approved by the Bankruptcy Court. Any adversary proceedings that have been filed or other significant 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 Bankruptcy Court. Any steps taken to improve operations and profitability of the Debtor. Other events as appropriate.] Projected Recovery of Avoidable Transfers [Choose option] 1.9. The Debtor does not intend to pursue preference, fraudulent conveyance, or other avoidance actions. OR 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 expected to be filed in this case: Transaction Defendant Amount Claimed OR [If the Debtor does not yet know whether it intends to pursue avoidance actions] The Debtor has not yet completed its investigation with regard to prepetition transactions. The Debtor anticipates completing its investigation by ________________. If you received a payment or other transfer of property within 90 days of bankruptcy, the Debtor may seek to avoid such transfer. ARTICLE 2 THE PLAN The Debtor's Plan must describe how its Creditors will be paid. Certain Claims are entitled to specific treatment under the Bankruptcy Code and are not placed in a class 5 American LegalNet, Inc. www.FormsWorkFlow.com for purpose of payment. For example, Administrative Expenses and Priority Tax Claims are not classified. As required by the Code, the Plan places Claims and Equity Interests in various classes and describes the treatment each class will receive. The Plan also states whether each class of Claims or Equity Interests is impaired or unimpaired. A Claim or Equity Interest can be impaired if the Plan alters the legal, equitable or contractual rights to which the Claimants are otherwise entitled. If the Plan is confirmed, each Creditor's recovery is limited to the amount provided in the Plan. Only Creditors in classes that are impaired may vote on whether to accept or reject the Plan, and only Creditors holding Allowed Claims may vote. A class accepts the Plan when more than one-half (1/2) in number and at least two-thirds (2/3) in dollar amount of the Allowed Claims that actually vote, vote in favor of the Plan. Also, a class of Equity Interest holder