Compare a restructuring term sheet with the plan contents and confirmation tests
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Turn the term sheet into a checklist against the plan contents and confirmation paragraphs the lawyer names. Draft no plan.
- What the lawyer must review
- A subchapter V plan must contain the history, liquidation analysis and projections in § 1190(1), and the future-earnings provision in § 1190(2). Confirmation in chapter 11 is § 1129. Section 1129(a)(7) requires, for each impaired class, acceptance or retention of property of a value, as of the effective date, not less than the holder would receive or retain in a chapter 7 liquidation, with the § 1111(b)(2) alternative. Section 1129(a)(11) requires that confirmation is not likely to be followed by liquidation or further financial reorganisation unless the plan proposes that. The lawyer writes the plan and the confirmation submission. A plan paper presented to the bankruptcy court is certified under Rule 9011(b). There is no deed of company arrangement in the Bankruptcy Code.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm that the actual tool, feature and processing terms permit use of this information, including access, retention, training and disclosure conditions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.