IMPORTANT: THIS IS A PREPARATION GUIDE — NOT A FILING-READY DOCUMENT

Bankruptcy court filings must comply with the Federal Rules of Bankruptcy Procedure,
local court rules, and any judge-specific requirements. This template provides
substantive legal content to help you draft — but it must be reviewed by a qualified
bankruptcy attorney and adapted to your local court's requirements before filing.
Check your district's local rules at https://www.uscourts.gov/rules-policies.

CHAPTER 11 DISCLOSURE STATEMENT

Table of Contents

1. Introduction and Purpose
2. Background of the Debtor
3. Events Leading to Bankruptcy
4. Significant Events During the Case
5. Summary of the Plan
6. Financial Information
7. Liquidation Analysis
8. Risk Factors
9. Voting Procedures
10. Tax Consequences

UNITED STATES BANKRUPTCY COURT

_____________ DISTRICT OF _____________

DISCLOSURE STATEMENT PURSUANT TO 11 U.S.C. § 1125 IN SUPPORT OF [DEBTOR]'S PLAN OF REORGANIZATION

PART 1: INTRODUCTION AND PURPOSE

Section A: Purpose of Disclosure Statement

This Disclosure Statement is submitted pursuant to 11 U.S.C. § 1125 to provide holders of Claims and Interests with adequate information to make an informed judgment about the Plan of Reorganization dated [__/__/____] (the "Plan").

IMPORTANT NOTICE: This Disclosure Statement has been [☐ approved ☐ submitted for approval] by the Bankruptcy Court pursuant to 11 U.S.C. § 1125. Approval of this Disclosure Statement does not constitute an endorsement of the Plan by the Court.

Section B: Recommendation

The Plan Proponent believes the Plan provides the best available recovery for all creditors and recommends that all holders of Claims entitled to vote accept the Plan.

PART 2: BACKGROUND OF THE DEBTOR

Section A: Business Description

Section B: Organizational Structure

[________________________________]
[Describe corporate structure, subsidiaries, affiliates, and ownership]

Section C: Management

PART 3: EVENTS LEADING TO BANKRUPTCY

Section A: Financial Difficulties

[________________________________]
[Describe the circumstances that led to the bankruptcy filing, including financial decline, key events, market conditions, litigation, or other factors]

Section B: Pre-Petition Efforts

[________________________________]
[Describe restructuring attempts, negotiations with creditors, or other efforts made before filing]

Section C: Filing Date and Circumstances

The Debtor filed a voluntary petition under Chapter 11 of the Bankruptcy Code on [__/__/____].

PART 4: SIGNIFICANT EVENTS DURING THE CASE

Section A: Case Administration

☐ Debtor-in-possession operating business under 11 U.S.C. §§ 1107–1108
☐ Chapter 11 Trustee appointed (11 U.S.C. § 1104)
☐ Examiner appointed (11 U.S.C. § 1104(c))
☐ Creditors' Committee formed (11 U.S.C. § 1102)

Section B: Key Court Orders

Section C: Claims Bar Date

The Court set [__/__/____] as the bar date for filing proofs of claim. As of [__/__/____], approximately [____] claims totaling approximately $[________________] have been filed.

PART 5: SUMMARY OF THE PLAN

Section A: Classification and Treatment

Section B: Means of Implementation

Source of Funding: [________________________________]

Post-Confirmation Management: [________________________________]

PART 6: FINANCIAL INFORMATION

Section A: Historical Financial Data

Summary of Income and Expenses (Pre-Petition):

Section B: Post-Petition Financial Performance

Section C: Financial Projections (Post-Confirmation)

Section D: Assets and Liabilities Summary

PART 7: LIQUIDATION ANALYSIS

Pursuant to the "best interests" test of 11 U.S.C. § 1129(a)(7), each holder of a Claim must receive at least as much under the Plan as it would receive in a Chapter 7 liquidation.

Section A: Estimated Chapter 7 Distribution

Estimated Chapter 7 Recovery for Unsecured Creditors: [____]%

Plan Recovery for Unsecured Creditors: [____]%

PART 8: RISK FACTORS

Holders of Claims should consider the following risks before voting:

☐ The Debtor may not achieve projected revenues
☐ Market conditions may deteriorate
☐ Key personnel may depart
☐ Litigation outcomes are uncertain
☐ Regulatory changes may affect operations
☐ [________________________________]
☐ [________________________________]

PART 9: VOTING PROCEDURES

Section A: Who May Vote

Only holders of Allowed Claims in impaired classes are entitled to vote on the Plan (11 U.S.C. § 1126(a), (f), (g)).

☐ Unimpaired classes are deemed to accept (§ 1126(f))
☐ Classes receiving nothing are deemed to reject (§ 1126(g))

Section B: Acceptance Requirements

A class of claims accepts the Plan if holders of at least two-thirds in dollar amount and more than one-half in number of the Allowed Claims in such class vote to accept (11 U.S.C. § 1126(c)).

A class of interests accepts if holders of at least two-thirds in amount vote to accept (11 U.S.C. § 1126(d)).

Section C: Voting Deadline

Ballots must be received by [________________________________] no later than [________________] on [__/__/____].

Mail completed ballots to:
[________________________________]
[________________________________]
[________________________________]

PART 10: TAX CONSEQUENCES

Creditors and interest holders should consult their own tax advisors regarding the tax consequences of the Plan. Potential tax consequences may include:

• Cancellation of debt income to the Debtor (26 U.S.C. § 108)
• Recognition of gain or loss on distribution of property
• Character of distributions (ordinary income vs. capital gain)
• Tax attribute reduction under 26 U.S.C. § 108(b)

CERTIFICATION

The undersigned certifies that this Disclosure Statement contains adequate information within the meaning of 11 U.S.C. § 1125(a) to enable holders of Claims and Interests to make an informed judgment about the Plan.

Signature: _________________________________ Date: [__/__/____]

Name: _________________________________
Title: _________________________________

Attorney Signature: _________________________________ Date: [__/__/____]
Attorney Name: _________________________________
Bar Number: _________________________________
Firm: _________________________________
Address: _________________________________
Phone: _________________________________
Email: _________________________________

This template provides general guidance for Chapter 11 disclosure statements under 11 U.S.C. § 1125 and FRBP 3016–3017. Content must be tailored to specific case facts. Always consult current local rules.