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Feasibility Determination Quick Reference Sheet

F EASIBILITY C ONDITIONS In order to be feasible, the Plan must satisfy these two conditions: Condition One

There must be a “reasonable assurance of Plan performance”

Condition Two

The Plan’s implementation must “not likely to be followed by an unanticipated financial reorganization or liquidation”

F EASIBILITY R EQUIREMENTS To satisfy these conditions, the Debtor must be reasonably likely to meet the following three requirements: Requirement One

Provide the cash necessary to pay all of the on-going claim payment obligations described in the Plan

Requirement Two

Maintain a sufficient level of cash throughout the Plan term to provide for the Property’s operating and capital costs while maintaining a level of economic viability sufficient to make the Plan payments

Requirement Three

Provide the cash necessary to pay all of the remaining claim payment obligations, if any, due at the end of the Plan term

F ACTORS C ONSIDERED I N D ETERMINING P LAN F EASIBILITY To form our Opinion, as to the satisfaction of these Conditions and Requirements, we considered the following factors in determining whether the Plan is feasible: Feasibility Factor One

The (future) earning power of the business

Feasibility Factor Two

The adequacy of the (reorganized) capital structure

Feasibility Factor Three

The economic conditions of the business

Feasibility Factor Four

The efficiency and effectiveness of management in control of the business after confirmation

Feasibility Factor Five

The reasonableness and impact of the plan terms to the success of the plan

Reprinted with permission of Tactical Financial Consulting, LLC The information and data herein may not be reproduced or referenced in any manner without the express written permission of Tactical Financial Consulting, LLC. For additional information please contact Franklind Lea at 770.573.9366.

Feasibility conditions quick reference sheet  
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