Laserfiche WebLink
claimants who actually vote to accept or reject the Plan are considered. <br />The Code defines acceptance of a Plan by a class of interests (equity holders) <br />as acceptance of two-thirds of the number of shares. Again, only those shares which <br />actually vote are considered in determining acceptance or rejection of the Plan. <br />C. Acceptance by One Impaired Class. <br />In order to confirm the Plan. the Court must find that at least one class of <br />impaired claims has accepted the Plan. In considering whether an impaired creditor <br />class has accepted the Plan, the Court must exclude the votes of any insider. <br />D. Best Interest Test. <br />Notwithstanding acceptance of the Plan by creditors and equity holders, if <br />an impaired claimant or interest holder does not accept the Plan. the Court must <br />independently determine that the Plan is in the best interest of the non -accepting <br />claimants or interest holders. To meet this test, the Court must determine that each <br />non -accepting claimant or interest holder will receive under the Plan. as of the <br />Effective Date. property of a value at least equal to the value that each such <br />claimant or holder would receive if the Debtor was liquidated under Chapter 7 of <br />the Code. The Debtor believes that the Plan satisfies the best interest test because <br />creditors will receive at least as much under the Plan as they would in a Chapter 7 <br />liquidation. Attached to this Disclosure Statement as Exhibit A is the Debtor' s <br />Chapter 7 liquidation analysis. That shows that each of the creditors in each Class <br />will receive at least as much under the Plan as they would in liquidation. Therefore, <br />the Debtor believes that its Plan satisfies the "best interest" test under the Code. <br />E. Acceptances of the Plan by Each Impaired Class. <br />As a condition to confirmation, the Code requires that each impaired class <br />accept the Plan. If each impaired class does not accept the Plan, the Court may <br />confirm the Plan, under certain circumstances, under the "cram down" provisions. <br />The confirmation of the Plan over the non -acceptance of an impaired class is <br />discussed in the following section. The Debtor believes that even if a class does <br />not accept the Plan, it can be confirmed pursuant to the "cram -down," as described <br />below. <br />F. Confirmation Without Acceptance by All Classes. <br />i. The " cram -down" provisions of the Code pen -nit confranation of a <br />plan under certain circumstances even if the plan is not accepted by all impaired <br />classes. <br />18 <br />