When a creditor receives a proposed Chapter 11 plan of reorganization in the mail promising the debtor will pay the creditor 100% over time it can be tempting to vote quickly in favor. However, it is important to remember that the plan must be based more on than a hope and a prayer. A mere promise to pay creditors in full is not enough for a plan to be confirmed. Rather, for a plan to be confirmed it must provide “adequate means for the plan’s implementation” pursuant to Section 1123(a)(5) of the Bankruptcy Code.
