Adequate Information

Information that would enable an investor typical of the holders of claims or interests in the case to make an informed judgment about a Chapter 11 plan. Acceptance or rejection of a plan may not be solicited after the commencement of the case unless the creditor being solicited first receives a copy of the plan or summary of the plan and a written disclosure statement approved by the bankruptcy court as containing “adequate information.” In determining the adequacy of the information, the court considers the complexity of the case and the benefit and cost of providing additional information.

Bankruptcy Code § 1125. See also Disclosure Statement, Lock-Up Agreement.

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