The first part of the process of confirming a Chapter 11 Plan of Reorganization is to obtain approval of a Disclosure Statement. This is a document that contains information about the debtor and the plan to aid creditors in deciding whether to accept or reject the plan.

Information typically included in a Disclosure Statement should include:

• Balance Sheet
• Income Statement
• History of the Debtor
• Post-bankruptcy events
• Projections

The bankruptcy court must decide whether the Disclosure Statement contains “adequate information” sufficient to enable creditors to make an informed decision whether to accept or reject the Plan. Once the court approves the Disclosure Statement the debtor will be permitted to disseminate the Plan and Disclosure Statement and obtain creditor votes. These are the necessary steps to allow a debtor to emerge from Chapter 11 bankruptcy.