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who receives cash or property in satisfaction of his Allowed Claim will recognize ordinary <br />income to the extent that the amount received is allocable to interest that accrued while the <br />claim was held by him (to the extent not previously taken into income by such person). In <br />addition, such creditor will recognize gain or loss on the exchange equal to the difference <br />between the creditor's tax basis in his Allowed Claim and the amount of consideration <br />allocable thereto. The character of any recognized gain or loss will depend upon the status <br />of the creditor, the nature of the Claim in his hands and his holding period. Each holder of <br />a Claim is strongly urged to consult with his own tax advisor regarding the federal, state, <br />local and foreign tax consequences of the Plan. Among the issues the holder of a Claim <br />may desire to consider, in addition to the issues discussed above, include the extent to which <br />the creditor is entitled to a bad debt deduction or worthless securities loss, if any, as a result <br />of the transactions contemplated by the Plan. <br />Under backup withholding rules, a holder of an Allowed Claim may be subject to <br />backup withholding at the rate of 20 percent with respect to payments made pursuant to the <br />Plan unless such holder (a) is a corporation or comes within certain other categories and. <br />when required, demonstrates this fact or (b) provides a correct taxpayer identification <br />number and certifies under penalties of perjury that the taxpayer identification number is <br />correct and that the holder is not subject to backup withholding because of failure to report <br />all dividends and interest income. <br />Confirmation of the Plan, or the failure to obtain confirmation of the Plan, can have <br />consequences to the holders of a Claim or an interest in this case, but the Plan and this <br />Disclosure Statement does not provide tax planning or advice. <br />THE FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN ARE <br />COMPLEX. THE SUMMARY DOES NOT DISCUSS ALL ASPECTS OF FEDERAL <br />INCOME TAXATION THAT MAY BE RELEVANT TO A PARTICULAR HOLDER <br />OF CLAIMS IN LIGHT OF SUCH HOLDER'S PARTICULAR CIRCUMSTANCES <br />AND INCOME TAX SITUATION. ALL HOLDERS OF CLAIMS SHOULD CONSULT <br />WITH THEIR TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES <br />TO THEM OF THE TRANSACTIONS CONTEMPLATED BY THE PLAN, <br />INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL OR <br />FOREIGN TAX LAWS, AND OF ANY CHANGE IN APPLICABLE TAX LAWS. <br />VII. VOTING INSTRUCTIONS AND PROCEDURE. <br />Ballots are being sent to all known holders of Allowed Claims, all disputed <br />claims and Interest holders. Only holders of Allowed Claims (or claims which are <br />deemed allowed or have been estimated by the Court) and the Interest holders are <br />entitled to vote on the Plan. A claim to which an objection has been filed is not an <br />Allowed Claim unless and until the Court rules on the objection and any appeals are <br />finally determined. However, the Court may temporarily allow a claim or estimate its <br />amount for the purpose of voting on the Plan. Unless authorized by the Court. disputed <br />24 <br />