Chapter 11 Plan Proponents: Getting Service Right

1. 28 days' notice (only) of time to object to a disclosure statement and notice of the hearing seeking approval of disclosure statement and objection service instructions is required. This “notice only” really does get served on “everybody” — debtor, all creditors, equity security holders, any trustee or committee appointed under the Code, the Securities and Exchange Commission (SEC), indenture trustees and the U.S. Trustee.
2. Until approved, a disclosure statement (and proposed plan) need only be served on a very limited group of parties — only the debtor, any trustee or committee appointed under the Code, the SEC, the U.S. Trustee and any party in interest who has requested same in writing.
3. At the same time approval of your disclosure statement is heard, you should obtain plan confirmation hearing related dates (including voting and objection deadlines) and a solicitation procedures order. This way, once the disclosure statement is approved you are set to quickly and precisely serve only the necessary documents and notices. Note special requirements for service to beneficial holders of securities.
4. When a plan provides for an injunction, certain content must be included in the notice of hearing on confirmation. If the injunction affects any who are not either creditors or equity security holders, there are additional address notice and copy requirements.
5. After the Disclosure Statement is approved, consistent with a solicitation procedures order, here is who ideally will get what:

• Notice of approval and a copy of the order approving the disclosure statement (without exhibits);
• 28 days' notice of time to object to a plan and notice of the plan confirmation hearing — include voting deadline and objection service instructions (integrate into item 1 notice above — see Official Form 313 for the form of a combined notice. Remember that the 28 days' notice is measured from the date of mailing, a sufficient amount of time must be allotted between the approval of the disclosure statement and the confirmation hearing to ensure the proper notices are timely placed in the mail.);
• The disclosure statement and proposed plan; and
• The appropriate ballot(s) to each class member entitled to vote for or against the plan;
• Other approved items, such as support letters.

6. Substantive plan modifications will require additional notice with time to object.
7. Entry of an order confirming the plan will need to be served on the debtor, all creditors, and indenture trustees.
8. Be aware of Rule 2002(j) where notice to “all creditors” may dictate notice to certain United States governmental authorities such as the IRS and the SEC.

The Federal Rules

• The plan or a court-approved summary of the plan;
• The disclosure statement approved by the court;
• Notice of the time within which acceptances and rejections of the plan may be filed; and
• Any other information as the court may direct, including any court opinion approving the disclosure statement or a court-approved summary of the opinion.

• At least 28 days' notice of the time fixed for filing objections and the hearing on confirmation of the plan containing the information described in Rule 2002(c)(3); and
• To the extent feasible, a copy of the plan and disclosure statement.

Additional Points to Consider For Cost-Efficiency

• Include notice language that states the hearing may be continued without further notice other than an announcement in the courtroom.
• Seek permission to exclude from plan confirmation hearing notice any undeliverable addresses from the disclosure statement approval notice.
• If the order approving disclosure statement is to be served under Rule 3017(d)(4), specify that its exhibits may be omitted from service.
• Consider seeking approval of mailing documents on CD or flash drive, this not only saves copy/print cost but postage costs as well.
• Consider a pre-addressed, stamped, envelope to facilitate the return of completed ballots.
• If you are lucky enough to be serving notice of entry of confirmation order along with notice of effective date, consider also serving notice of final fee applications and administrative claims deadline in the same envelope.