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The debtor must propose a plan of reorganization that shows how the debtor intends to reorganize its business and pay outstanding debts. The reorganization plan may also terminate certain burdensome business contracts like leases. The creditors will have an opportunity to negotiate the terms of the plan with the debtor. The creditors will be able to vote for or against the reorganization plan prior to the court’s consideration of the plan. Assuming the plan receives the requisite votes and meets the other requirements set forth in the Bankruptcy Code, the court will approve the plan. The debtor must then make payments and perform its obligations under the confirmed plan.

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01.14.2007 | 34 Comments

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01.14.2007 | 16 Comments

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