Plan Proponent'S Disclosure Statement Page 14
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B25B (Official Form 25B) (12/08) – Cont
C.
Liquidation Analysis
To confirm the Plan, the Court must find that all creditors and equity interest holders who do
not accept the Plan will receive at least as much under the Plan as such claim and equity interest
holders would receive in a chapter 7 liquidation. A liquidation analysis is attached to this Disclosure
Statement as Exhibit E.
D.
Feasibility
The Court must find that confirmation of the Plan is not likely to be followed by the
liquidation, or the need for further financial reorganization, of the Debtor or any successor to the
Debtor, unless such liquidation or reorganization is proposed in the Plan.
1.
Ability to Initially Fund Plan
The Plan Proponent believes that the Debtor will have enough cash on hand on the effective
date of the Plan to pay all the claims and expenses that are entitled to be paid on that date. Tables
showing the amount of cash on hand on the effective date of the Plan, and the sources of that cash are
attached to this disclosure statement as Exhibit F.
2.
Ability to Make Future Plan Payments And Operate Without Further
Reorganization
The Plan Proponent must also show that it will have enough cash over the life of the Plan to
make the required Plan payments.
The Plan Proponent has provided projected financial information. Those projections are listed
in Exhibit G.
The Plan Proponent’s financial projections show that the Debtor will have an aggregate annual
average cash flow, after paying operating expenses and post-confirmation taxes, of $
. The final
Plan payment is expected to be paid on
.
[Summarize the numerical projections, and highlight any assumptions that are not in accord with past
experience. Explain why such assumptions should now be made.]
You Should Consult with Your Accountant or other Financial Advisor If You Have Any
Questions Pertaining to These Projections.
V.
EFFECT OF CONFIRMATION OF PLAN
A.
DISCHARGE OF DEBTOR [If the Debtor is not entitled to discharge pursuant to 11
U.S.C. § 1141(d)(3) change this heading to “NO DISCHARGE OF DEBTOR.”]
[Option 1 – If Debtor is an individual and § 1141(d)(3) is not applicable]
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