Disclosure Statement:

A Disclosure Statement is a legal document filed by a company as part of its Chapter 11 bankruptcy case. The purpose of the Disclosure Statement is to provide creditors with sufficient information to make an informed decision about whether to accept or reject the company’s proposed Chapter 11 Plan of Reorganization. The Disclosure Statement typically includes detailed information about the company’s financial condition, the reasons for the bankruptcy filing, the key provisions of the proposed plan, and the risks and benefits associated with the plan. The Disclosure Statement must be approved by the bankruptcy court before it can be distributed to creditors for their review and vote.