Chapter 11 Liquidating Plan (After Going Concern Sale with Post-Confirmation Trust)

The Chapter 11 Liquidating Plan (After Going Concern Sale with Post-Confirmation Trust) is a legal template that outlines the necessary steps and processes for a company's liquidation under the provisions of Chapter 11 of the United States Bankruptcy Code. This template specifically pertains to cases where the company has undergone a going concern sale and establishes a post-confirmation trust to facilitate the efficient distribution of assets to creditors.

In a Chapter 11 bankruptcy, the company aims to reorganize its operations and financial affairs, with the ultimate goal of emerging from bankruptcy as a viable entity. However, when the best course of action is to liquidate the company's assets and cease operations, this template provides a clear framework for doing so while ensuring compliance with US bankruptcy laws.

The template covers various aspects of the liquidation process, including the creation of a post-confirmation trust. After the bankruptcy court confirms the liquidating plan, a trustee is appointed to oversee the liquidation and distribution of assets to creditors. The template contains guidelines on the appointment, duties, and powers of this trustee, ensuring their actions conform to legal requirements.

Additionally, the template outlines the order of priority for distributing the company's assets to creditors, in accordance with the Bankruptcy Code. It helps establish a fair and equitable distribution plan, taking into consideration the different classes of creditors and their respective claims.

Furthermore, the template may include provisions related to the management and sale of the company's assets, with a focus on maximizing their value for the benefit of creditors. It may provide guidelines on asset appraisal, sales procedures, and the treatment of any liens or encumbrances on the assets.

Overall, this legal template serves as a comprehensive guide for companies undergoing a Chapter 11 liquidation process after a going concern sale. It ensures compliance with US bankruptcy laws, facilitates the fair distribution of assets to creditors through the establishment of a post-confirmation trust, and provides clarity on the rights and responsibilities of all parties involved in the liquidation process.