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developing plan business bankruptcy
What happens in developing a Chapter 11 bankruptcy plan?
The debtor company develops a plan with the various committees. The company or its counsel usually prepares a disclosure statement and reorganization plan and files it with the court. If it is complete (if the company is publicly held, it is reviewed by the SEC), creditors (and sometimes the stockholders) vote on the plan.
The Bankruptcy Court confirms the plan, and the company carries out the plan by distributing the securities and other payments called for by the plan.
(Reviewed 11.10.08)
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