Disclosure Statement

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In bankruptcy proceedings, a disclosure statement is a document that provides information about the debtor's reorganization plan. The disclosure statement is intended to inform creditors and other interested parties about the plan and allow them to vote on whether to approve it.
The debtor filed a revised disclosure statement after addressing concerns raised by creditors.
In re Acme Corporation (2019), the court denied approval of the debtor's reorganization plan because the disclosure statement was found to be misleading.
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Frequently Asked Questions

The disclosure statement must include information about the debtor's financial condition, the proposed plan of reorganization, and the potential risks and benefits of the plan for creditors.

Creditors and other parties with an interest in the bankruptcy estate vote on the reorganization plan.

The plan must be approved by a majority of creditors whose claims are affected by the plan.

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