Plan of Reorganization, Disclosure Statement, and Confirmation

What this video covers

• Why the disclosure statement hearing and the plan confirmation hearing are separate procedural steps that cannot be combined or skipped
• What adequate information means for a disclosure statement, and how it differs from the rigid disclosure standards in an Initial Public Offering (IPO) prospectus
• How debtor exclusivity works: the 120-day initial period, extendable up to 18 months, and why it is a massive tactical advantage in plan negotiation
• The six requirements for consensual confirmation, including why best interests of creditors is a holder-by-holder test, not a class-level test
• How creditor class voting works: the two-thirds in amount and more-than-one-half in number prongs, and what happens when one prong clears but the other fails
• Why impairment is a legal-rights question, not a recovery question, and how unimpaired classes are deemed to accept while classes receiving nothing are deemed to reject
• The three cramdown requirements: at least one impaired non-insider class accepting, no unfair discrimination, and fair and equitable treatment (including the absolute priority rule and the three alternative paths for secured creditors)