Local Rule RULE 3017-1: DISCLOSURE STATEMENT - APPROVAL

RULE 3017-1. DISCLOSURE STATEMENT - APPROVAL Each disclosure statement formulated pursuant to 11 U.S.C. § 1125 must meet the following minimum requirements.

A.Description of Business. The debtor must furnish information describing the nature of the business being reorganized under Chapter 11. This analysis must include the competitive conditions in the industry and the debtor's role in that industry. The debtor must disclose whether or not it is dependent upon one or more customers or clients. Where the debtor is a licensed professional whose income is derived from providing services that are billed on an hourly rate, the debtor must provide information giving the creditor a good faith estimate of the number of clients, the anticipated services, the hourly rate, and the anticipated annual billings that will provide the source of his income. The Chapter 11 debtor should provide a description of the service to be rendered, location of principal and branch offices, employee staff and payroll and salaries of officers and directors. Any special property interests, such as patents, trademarks, licenses, or franchises should be disclosed and described.

B.History of the Debtor. The Chapter 11 debtor should describe in detail its activities before filing, including the reasons for filing the Chapter 11. This history should be provided in a neutral, objective and noninflammatory manner. Litigation issues are to be described in an objective professional tone, free of any mischaracterization of the issues to be resolved in such litigation. Where possible, the debtor should provide an evaluation of the probable success of any litigation and its effect on the debtor's business or his plans for reorganization under Chapter 11.

C.Financial Information. The debtor must provide a pre-petition statement of assets and liabilities, together with a profit and loss analysis. The debtor must also provide financial information sufficient to inform the creditors of all liens, encumbrances, security interests, loans or other financial obligations that may impair the debtor or his assets.

D.Description of the Plan. The plan of reorganization must be described in sufficient detail to give the creditor enough information to determine how its rights will be affected.

E.How the plan is to be executed.

F.Liquidation Analysis.

G.Management to be retained and the compensation of the personnel retained.

H.Projection of Operations. The debtor should provide the projection of operations subsequent to confirmation so that the Court may determine the feasibility of the plan. The debtor must provide sufficient financial information to determine if the projections for operations subsequent to confirmation are feasible. The debtor is required to make a full, clear and complete disclosure of all underlying assumptions. If the plan assumes an increase in income, the basis for this assumption must be set forth. If the future operations contain a risk of loss of income or anticipated financial instability, the factors that may cause a loss or diminution of income should be set forth.

I.Litigation. All pending or contemplated litigation of whatever nature must be described fully, completely and in detail. Trial dates, where known, must be disclosed. Appeals, filed or contemplated, must be disclosed. The disclosure statement must include a professional evaluation of the probable success of any pending or contemplated litigation.

J.Transactions with Insiders. The disclosure statement must describe fully, completely and in detail all transactions with insiders. If there are no such transactions, that shall be stated.

K.Tax Consequences. The disclosure statement must reveal the probable tax consequences if the Chapter 11 Plan is confirmed. If there are no tax consequences, the disclosure statement must contain an affirmative statement of that fact.