Print Page     Close Window     

SEC Filings

COSI INC filed this Form 8-K on 02/13/2017
Entire Document

11 U.S.C. § 1125(a)(1); see also In re Mahoney Hawkes, LLP, 289 B.R. 285 (Bankr. D. Mass. 2002).

23.          Thus, a debtor’s disclosure statement must, as a whole, provide information that is reasonably calculated to permit an “informed judgment” by impaired creditors entitled to vote on the plan of reorganization.  See In re Dakota Rail, Inc., 104 B.R. 138, 142 (Bankr. D. Minn. 1989); In re Copy Crafters Quickprint Inc., 92 B.R. 973, 979 (Bankr. N.D.N.Y. 1988) (adequacy of disclosure statement “is to be determined on a case specific basis under a flexible standard that can promote the policy of Chapter 11 towards fair settlement through a negotiation process between informed interested parties”).  Fundamentally, a disclosure statement “must clearly and succinctly inform the average unsecured creditor what it is going to get, when it is going to get it, and what contingencies there are to getting its distribution.”  In re Ferretti, 128 B.R. 16, 19 (Bankr. D.N.H. 1991).

24.          In examining and determining the adequacy of the information contained in a disclosure statement, the Court has broad discretion.  See Texas Extrusion Corp. v. Lockheed Corp. (In re Texas Extrusion Corp.), 844 F.2d 1142, 1157 (5th Cir. 1988), cert. denied, 488 U.S. 926 (1988); see also Dakota Rail, 104 B.R. at 143 (courts have “wide discretion to determine . . . whether a disclosure statement contains adequate information without burdensome, unnecessary and cumbersome detail”).

25.          Courts generally examine whether the disclosure statement contains, if applicable, the following types of information:

The circumstances that gave rise to the filing of the bankruptcy petition;

A complete description of the available assets and their value;

The anticipated future of the debtor;

The source of the information provided in the disclosure statement;

© All rights reserved.