Official Form 425B Disclosure Statement for Small Business Under Chapter 11 page 1 Check if this is an amended filing Official Form 425B Disclosure Statement for Small Business Under Chapter 11 12/17 [Name of Proponent Disclosure Statement, Dated [Insert Date] Table of Contents . See instructions about how to modify the table of contents if you do not have all of the sections below. [ Insert when text is finalized] I. Introduction ................................ ................................ ................................ ................................ ................... 3 A. Purpose of This Document ................................ ................................ ................................ ................................ ....... 3 B. Deadlines for Voting and Objecting; Date of Plan Confirmation He aring ................................ ................................ ... 3 C. Disclaimer ................................ ................................ ................................ ................................ ................................ 4 II. Background ................................ ................................ ................................ ................................ ................. 4 ................................ ................................ ................................ ..... 4 B. Insiders of the Debtor ................................ ................................ ................................ ................................ ............... 4 C. Management of the Debtor During the Bankruptcy ................................ ................................ ................................ ... 4 D. Events Leading to Chapter 11 Filing ................................ ................................ ................................ ......................... 4 E. Significant Events During the Bankruptcy Case ................................ ................................ ................................ ........ 5 F. Projected Recovery of Avoidable Transfers ................................ ................................ ................................ .............. 5 G. Claims Objections ................................ ................................ ................................ ................................ .................... 5 H. Current and Historical Financial Conditions ................................ ................................ ................................ .............. 6 III. Summary of the Plan of Reorganization and Treatment of Claims and Equity Interests ............................ 6 A. What Is the Purpose of the Plan of Reorganization? ................................ ................................ ................................ . 6 B. Unclassified Claims ................................ ................................ ................................ ................................ .................. 6 1. Administrative expenses, involuntary gap claims, and quarterly and Court fees ................................ .................... 6 2. Priority tax claims ................................ ................................ ................................ ................................ .................. 7 C. Classes of Claims and Equity Interests ................................ ................................ ................................ ..................... 7 1. Classes of secured claims ................................ ................................ ................................ ................................ .... 7 2. Classes of priority unsecured claims ................................ ................................ ................................ ..................... 8 3. Classes of general unsecured claims ................................ ................................ ................................ .................... 9 4. Classes of equity interest holders ................................ ................................ ................................ ....................... 10 D. Means of Implementing the Plan ................................ ................................ ................................ ............................ 10 1. Source of payments ................................ ................................ ................................ ................................ ............ 10 2. Post - confirmation Management ................................ ................................ ................................ .......................... 10 E. Risk Factors ................................ ................................ ................................ ................................ ........................... 10 F. Executory Contracts and Unexpired Leases ................................ ................................ ................................ ........... 11 G. Tax Consequences of Plan ................................ ................................ ................................ ................................ .... 11 IV. Confirmation Requirements and Procedures ................................ ................................ ........................... 12 A. Who May Vote or Object ................................ ................................ ................................ ................................ ......... 12 1. What is an allowed claim or an allowed equity interest? ................................ ................................ ...................... 12 2. What is an impaired claim or impaired equity interest? ................................ ................................ ........................ 12 3. Wh o is not entitled to vote ................................ ................................ ................................ ................................ ... 13 4. Who can vote in more than one class ................................ ................................ ................................ ................. 13 B. Votes Necessary to Confirm the Plan ................................ ................................ ................................ ..................... 13 1. Votes necessary for a class to accept the plan ................................ ................................ ................................ ... 13 D ebtor Name United States Bankruptcy Court for the: District of ( State ) Case number: Fill in this information to identify the case: American LegalNet, Inc. www.FormsWorkFlow.com Debtor Name Case number Official Form 425B Disclosure Statement for Small Business Under Chapter 11 page 2 2. Treatment of non - accepting classes of secured claims, general unsecured claims, and interests ...................... 13 C. Liquidation Analysis ................................ ................................ ................................ ................................ ................ 14 D. Feasibility ................................ ................................ ................................ ................................ ............................... 14 1. Ability to initial ly fund plan ................................ ................................ ................................ ................................ ... 14 2. Ability to make future plan payments and operate without further reorganization ................................ ................ 14 V. Effect of Confirmation of Plan ................................ ................................ ................................ .................... 15 A.Discharge of Debtor ................................ ................................ ................................ ................................ ................. 15 B. Modification of Plan ................................ ................................ ................................ ................................ ................ 15 C. Final Decree ................................ ................................ ................................ ................................ ........................... 16 VI. Other Plan Provisions ............................