Disclosure Statement Describing Chapter 11 Plan {NJB DSCh11]

LOCAL FORM 18 Attorney Name Firm Name Firm Address Firm Telephone No. Attorneys for By: Names of Responsible Individual Attorney(s) (Attorney Code) UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW JERSEY In re: Chapter 11 NAME OF DEBTOR, Case No. ( ) Debtor. 1 DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE 2 3 BANKRUPTCY CODE DESCRIBING CHAPTER 11 PLAN PROPOSED BY PLEASE READ THIS DISCLOSURE STATEMENT CAREFULLY. THIS DISCLOSURE STATEMENT CONTAINS INFORMATION THAT MAY BEAR UPON 4 YOUR DECISION TO ACCEPT OR REJECT THIS PLAN OF REORGANIZATION. THE PLAN PROPONENT BELIEVES THAT TH IS PLAN OF REORGANIZATION IS IN THE BEST INTEREST OF THE CREDITORS AND THAT THE PLAN IS FAIR AND EQUITABLE. THE PROPONENT URGES THAT THE VOTER ACCEPT THE PLAN. Dated: Proponent By: Local Form 18. Rev. 9/9/04 jml <<<<<<<<<********>>>>>>>>>>>>> 2 TABLE OF CONTENTS Page I. INTRODUCTION .......................................................1 A. Purpose o f T his D ocument ...........................................1 B. Confirmation P rocedures ............................................3 1. Time and Place of the Confirmation Hearing......................4 2. Deadline F or V oting F or o r A gainst t he P lan ......................4 3. Deadline F or O bjecting t o t he C onfirmation o f t he P lan ..............4 4. Identity of Person to Contact for More Information Regarding the Plan ......................................................4 C. Disclaimer .......................................................4 II. BACKGROUND ........................................................5 A. Description a nd H istory o f t he D ebtors B usiness .........................5 B. Principals/Affiliates of Debtors Business...............................5 C. Management o f t he D ebtor B efore a nd A fter t he B ankruptcy ................5 D. Events Leading to Chapter 11 Filing...................................5 E. Significant E vents D uring t he B ankruptcy ..............................5 1. Bankruptcy Proceedings......................................5 2. Other Legal Proceedings......................................5 3. Actual and Projected Recovery of Preferential or Fraudulent Transfers ..................................................6 4. Procedures I mplemented t o R esolve F inancial P roblems .............6 5. Current a nd H istorical F inancial C onditions .......................6 III. SUMMARY OF THE PLAN OF REORGANIZATION.........................6 A. What Creditors and Interest Holders Will Receive Under the Proposed Plan ................................................................6 B. Unclassified C laims ................................................6 1. Administrative E xpenses a nd F ees ..............................7 2. Priority T ax C laims ..........................................8 C. Classified C laims a nd I nterests .......................................9 1. Classes o f S ecured C laims .....................................9 2. Classes o f P riority U nsecured C laims ...........................1 0 3. Class o f G eneral U nsecured C laims ............................1 1 4. Class(es) o f I nterest H olders ..................................1 1 D. Means o f E ffectuating t he P lan ......................................1 2 1. Funding for the Plan........................................1 2 2. Post-confirmation M anagement ................................1 2 3. Disbursing A gent ...........................................1 2 E. Other P rovisions o f t he P lan ........................................1 2 1. Executory C ontracts a nd U nexpired L eases ......................1 2Local Form 18. Rev. 9/9/04 jml i <<<<<<<<<********>>>>>>>>>>>>> 3 2. Changes i n R ates S ubject t o R egulatory C ommission A pproval ......1 2 3. Retention o f J urisdiction .....................................1 2 4. Procedures f or R esolving C ontested C laims ......................1 3 5. Effective D ate .............................................1 3 6. Modification ...............................................1 3 F. Tax C onsequences o f P lan ..........................................1 3 G. Risk F actors .....................................................1 4 IV. CONFIRMATION REQUIREMENTS AND PROCEDURES ...................1 4 A. Who M ay V ote o r O bject ...........................................1 5 1. Who M ay O bject t o C onfirmation o f t he P lan .....................1 5 2. Who May Vote to Accept/Reject the Plan........................1 5 a. What I s a n A llowed C laim/Interest .......................1 5 b. What I s a n I mpaired C laim/Interest .......................1 5 3. Who Is Not Entitled to Vote..................................1 6 4. Who C an V ote i n M ore T han O ne C lass .........................1 7 5. Votes N ecessary t o C onfirm t he P lan ...........................1 7 6. Votes Necessary for a Class to Accept the Plan .....................................................1 7 7. Treatment of Nonaccepting Classes............................1 7 8. Request for Confirmation Despite Nonacceptance by Impaired Class(es) ..................................................1 8 B. Liquidation A nalysis ..............................................1 8 C. Feasibility.......................................................1 9 V. EFFECT O F C ONFIRMATION O F P LAN ..................................2 1 A. Discharge .......................................................2 1 B. Revesting o f P roperty i n t he D ebtor ..................................2 2 C. Modification o f P lan ..............................................2 2 D. Post-Confirmation Conversion/Dismissal..............................2 2 Local Form 18. Rev. 9/9/04 jml ii <<<<<<<<<********>>>>>>>>>>>>> 4 I. INTRODUCTION 5 6 7 is the Debtor in a Chapter 11 bankruptcy case. On , commenced a bankruptcy 8 9 case by filing Chapter 11 petition under the United States Bankruptcy Code (Code), 11U.S.C. 101, et seq., Chapter 11 of the Code allows the Debtor, and under some circumstances,creditors and other parties in interest, to propose a plan of reorganization (Plan). The Plan mayprovide for the Debtor to reorganize by continuing to operate, to liquidate by selling assets of the 10 estate, or a combination of both. is the party proposing the Plan sent to you in the sameenvelope as this document. THE DOCUMENT YOU ARE READING IS THE DISCLOSURE STATEMENT FOR THE PLAN WHICH IS ANNEXED HERETO AS EXHIBIT A. 11 This is a plan. In other words, the Prop