R.I. Local. Form 3017-1.1 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF RHODE ISLAND -------------------------------* In re: : : Debtor(s) : : -------------------------------* BK No. Chapter COMBINED PLAN OF REORGANIZATION AND DISCLOSURE STATEMENT FOR SMALL BUSINESS DEBTOR DATED: _________________________ I. INTRODUCTION A. General This is the Combined Plan of Reorganization and Disclosure Statement for a Small Business Debtor (the "Plan and Disclosure Statement") for _____________________________ ______________________________________________________________________________ (the "Debtor"). Portions of the Plan and Disclosure Statement which refer solely to the Plan of Reorganization will be referred to as the "Plan". This Plan and Disclosure Statement contains a description of (1) the Debtor, (2) the operation of its business, and (3) its expectations for future operations. It also discusses the valuation of the Debtor's assets and alternatives to the Plan. Also included is the Debtor's Plan. On___________________________ (the "Petition Date") the Debtor filed a voluntary petition for relief under Title 11, United States Code, known as the Bankruptcy Code (the "Code"). The chapter 11 case is pending in the United States Bankruptcy Court for the District During the case, the Debtor has maintained its of Rhode Island (the "Court"). ______________________________________________________________________ business as a Debtor in Possession under Sections 1107 and 1108 of the Code. Pursuant to § 1125 of the Code, this Plan and Disclosure Statement is being sent to all holders of claims against the Debtor so that the Debtor may solicit votes for the Plan and creditors may be provided with information concerning the Plan, the Debtor and the prospect of future operations. All references herein to the Plan and the Disclosure Statement are as it may be amended from time to time. [A summary description of the Plan should be stated here.] American LegalNet, Inc. www.FormsWorkFlow.com IF CONFIRMED, THE PLAN IS A LEGALLY BINDING ARRANGEMENT AND SHOULD BE READ IN ITS ENTIRETY. ACCORDINGLY, SOLICITED PARTIES MAY WISH TO CONSULT WITH THEIR ATTORNEYS REGARDING THE CONTENTS OF THE PLAN AND DISCLOSURE STATEMENT. B. Attachments Accompanying this Combined Plan and Disclosure Statement is a copy of a financial forecast for the Debtor, annexed as Exhibit A. [Additional attachments, if any, should be described here.] American LegalNet, Inc. www.FormsWorkFlow.com II. THE PLAN A. Payment of Administrative Claims Administrative Claims will be paid in cash, in full, on the later of the effective date or the date they are allowed by an Order of the Bankruptcy Court. Ordinary trade debt incurred by the Debtor in the course of the chapter 11 case will be paid on an ongoing basis in accordance with the ordinary business practices and terms between the Debtor and its trade creditors. The payments contemplated by the Plan will be conclusively deemed to constitute full satisfaction of Allowed Administrative Claims. Administrative Claims include any postpetition fees and expenses allowed to Professionals employed upon Court authority to render services to the Debtor during the course of the chapter 11 case. B. Payment of Tax Claims Priority Claims, as scheduled or as filed and allowed by the Court, of whatever kind or nature will be paid in monthly installments with interest over a _______________ year period from the Petition Date. As of the Petition Date, the Rhode Island Division of Taxation was owed approximately $_____________ and the Internal Revenue Service was owed approximately $_________________. [Additional priority claims and their treatment should be described here. For example, claim of the Department of Unemployment Assistance.] American LegalNet, Inc. www.FormsWorkFlow.com C. Designation and Payment of Classes of Claims [A list of classes and their treatment should be stated here.] D. Treatment of Executory Contracts and Unexpired Leases Please check one: [ ] The Plan does not propose to reject any executory agreements. [ ] The executory contracts shown on Exhibit B are hereby rejected. The Debtor may file a motion or amend this Plan to reject other executory contracts and leases prior to confirmation. Subject to the requirements of § 365 of the Bankruptcy Code, all executory contracts or unexpired leases of the Debtor that are not rejected, have not been rejected by order of the Court or are not the subject of a motion to reject pending 90 days after the confirmation date will be deemed assumed. If any party to an executory contract or unexpired lease which is deemed assumed pursuant to the Plan objects to such assumption, the Court may conduct a hearing on such objections on any date which is either mutually agreeable to the parties or fixed by the Court. All payments to cure defaults that may be required by § 365(b)(1) of the Bankruptcy Code will be made by the Debtor. In the event of a dispute regarding the amount of any such payments or the ability of the Debtor to provide for adequate assurance of future performance, the Debtor will make any payments required by § 365(b)(1) of the Bankruptcy Code after the entry of a Final Order resolving such dispute. All Proofs of Claim with respect to claims arising from the rejection of executory contracts or unexpired leases must be filed with the Court within thirty (30) days from and after the date of entry of an order of the Court approving such rejection or such claims will be barred. A creditor whose claims arise from rejection of executory contracts and unexpired leases will be treated as an unsecured creditor. E. Means for Implementation of the Plan On confirmation, all property of the Debtor, tangible and intangible, including, without limitation, licenses, furniture, fixtures and equipment, will revert, free and clear of all claims and interests except as provided herein, to the Debtor. The Debtor will pay the claims described above from its operations postconfirmation. The Debtor estimates that on the effective date the funds to be distributed are approximately $_____________ to administrative claimants. The Debtor expects to have sufficient cash on hand to make the payments required on the effective date. All quarterly disbursement fees, arising under 23 U.S.C. § 1930 ("Quarterly Fees"), accrued prior to confirmation shall be paid in full, on or before the date of confirmation of the Debtor's plan, by the Debtor or any successor to the