2020-10-20_GENERAL DOCUMENTS - C1980004 (2)

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Debtor's assets. Distribution to creditors would be made in accordance with the priorities established by the Code. See "ACCEPTANCE OF THE PLAN AND CONFIRMATION- -BEST INTEREST TEST" for a more complete description of the possible consequences of a Chapter 7 liquidation on the distributions to the various creditor and interest classes. The Chapter 11 Trustee does not believe that Chapter 7 would be of any benefit to either secured or unsecured creditors because a Chapter 7 liquidation would increase the costs which would need to be paid before amounts were distributed to creditors and because liquidation would result in payments to creditors that would be less than proposed in the Plan. C. Other Plans. Other parties in interest may propose alternative Chapter 11 plans. No party has indicated any desire to propose a competing plan and the Chapter 11 Trustee thinks it unlikely that any alternative plan could be proposed that would be more beneficial to creditors than this Plan. Therefore, the Chapter 11 Trustee does not view the " other plan" option as reasonable or likely. D. CERTAIN FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN. THE FOLLOWING DISCUSSION IS A SUMMARY OF CERTAIN SIGNIFICANT FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN THAT AFFECT OR THAT MAY AFFECT THE HOLDERS OF ALLOWED CLAIMS AND INTERESTS. UNLESS OTHERWISE PROVIDED, THIS DISCUSSION DOES NOT ADDRESS THE PARTICULAR FEDERAL INCOME TAX CONSEQUENCES THAT MAY BE RELEVANT TO CERTAIN TYPES OF TAXPAYERS SUBJECT TO SPECIAL TREATMENT UNDER THE FEDERAL INCOME TAX LAWS, NOR DOES IT DISCUSS ANY ASPECTS OF STATE, LOCAL. FOREIGN OR OTHER TAX LAWS. THE TAX CONSEQUENCES TO HOLDERS OF CLAIMS AND INTERESTS MAY VARY BASED ON THE INDIVIDUAL CIRCUMSTANCES OF EACH HOLDER. MOREOVER, THE TAX CONSEQUENCES OF CERTAIN ASPECTS OF THE PLAN ARE UNCERTAIN DUE TO THE LACK OF APPLICABLE LEGAL PRECEDENT AND THE POSSIBILITY OF CHANGES IN THE LAW. EXCEPT AS DESCRIBED HEREIN, THE DEBTOR HAS NOT APPLIED FOR OR OBTAINED FROM THE INTERNAL REVENUE SERVICE ANY RULING S OR AGREEMENTS WITH RESPECT TO ANY OF THE TAX ASPECTS OF THE PLAN AND NO OPINION OF COUNSEL HAS BEEN REQUESTED OR OBTAINED BY THE DEBTOR WITH RESPECT THERETO. THERE CAN BE NO ASSURANCE THAT THE INTERNAL REVENUE SERVICE WILL NOT CHALLENGE CERTAIN OF THE TAX CONSEQUENCES DESCRIBED HEREIN, OR THAT SUCH A CHALLENGE, IF ASSERTED, WOULD NOT BE SUSTAINED. ACCORDINGLY. EACH HOLDER OF A CLAIM OR INTEREST IS STRONGLY URGED TO CONSULT WITH HIS OWN TAX ADVISOR REGARDING THE FEDERAL, STATE, LOCAL, FOREIGN OR OTHER TAX CONSEQUENCES OF THE PLAN. 20