PROPOSED DISCLOSURE STATEMENTS IN CHAPTER 9 AND

CHAPTER 11 CASES: TRANSMITTAL AND DISCLAIMER (a) Transmittal. Unless the Court orders otherwise, the proponent of a plan must transmit all notices and documents required to be transmitted by Bankruptcy Rule 3017(a). Upon 22 request, the Clerk shall supply the proponent, at a reasonable cost, with any available matrix of creditors for the purpose of preparing address labels. (b) Disclaimer Other Than in Small Business Cases.

Except in a case where the debtor is a small business, before a proposed disclosure statement has been approved by the Court, the proposed disclosure statement must have on its cover, in boldface type, the following language, or words of similar import: This is not a solicitation of acceptance or rejection of the plan. Acceptances or rejections may not be solicited until a disclosure statement has been approved by the Court. This disclosure statement is being submitted for approval but has not been approved by the Court. (c) Disclaimer in Small Business Cases.

In a case where the debtor is a small business that has not elected to proceed under subchapter V of chapter 11 of the Bankruptcy Code, after conditional approval but before final approval of a proposed disclosure statement has been given, the proposed disclosure statement must have on its cover, in boldface type, the following language, or words of similar import: The debtor in this case is a small business. As a result, the debtor is permitted to distribute and has distributed this disclosure statement before its final approval by the court. If an objection to this disclosure statement is filed by a party in interest, final approval of this disclosure statement will be considered at or before the hearing on confirmation of the plan. Comment Subdivisions (a) and (b) of this rule are derived from Former Local Bankruptcy Rule 55.

Subdivision (c) of this rule, added in 1996, is derived from section 217 of the Bankruptcy Reform Act of 1994. Bankruptcy Rule 3017(a) provides that the plan and the disclosure statement shall be mailed with the notice of the hearing to the debtor, the trustee, each committee, the Securities and Exchange Commission, the United States Trustee, and any party in interest who requests in writing a copy of the disclosure statement or plan. Bankruptcy Rule 2002(b) permits the Court to require a party other than the Clerk to bear the responsibility for transmitting the notices and documents specified in this rule. The reasonable cost, if any, provided for in subdivision (a) of this rule is the fee prescribed by the Judicial Conference of the United States pursuant to 28 U.S.C. §1930(b).

The rule was amended in 2024 to make clear that subdivision (c) applies only to small business cases that are not governed by the provisions of subchapter V, since there is no separate disclosure statement in a subchapter V case unless the Court orders otherwise for cause. 23 Rule 3018-1 CERTIFICATION OF ACCEPTANCE OR REJECTION OF PLANS IN CHAPTER 9 AND CHAPTER 11 CASES (a) (b) Certification of Vote. At least seven (7) days prior to the hearing on confirmation of a chapter 9 or chapter 11 plan, the proponent of a plan or the party authorized to receive the acceptances and rejections of the plan must certify to the Court in writing the amount and number of allowed claims or allowed interests of each class accepting or rejecting the plan and any ballots not counted. A copy of the certification must be served upon the debtor, the trustee, each committee, and the United States Trustee.

The Court may find that the plan has been accepted or rejected on the basis of the certification. Notice of Ineffective Election. If a plan in a chapter 9 or chapter 11 case permits the holder of a claim or interest to make an election with respect to the treatment of the claim or interest, and for any reason the holder's election is deemed ineffective or otherwise is not counted by the person authorized to tabulate ballots, that person must give notice of that fact to the holder at least seven (7) days prior to the hearing on confirmation. Comment Subdivision (a) of this rule is derived from Former Local Bankruptcy Rule 54 and is intended to permit the Court to rely on a certification in determining whether a plan has been accepted or rejected under section 1126 of the Bankruptcy Code.

If an issue has been raised with respect to the acceptance or rejection of a plan, the Court may hold an evidentiary hearing. Where acceptances or rejections of a plan of reorganization have been solicited prior to the commencement of the case, the certification may be filed together with the petition. Subdivision (b) of this rule, added in 1996, is intended to enable a creditor or interest holder who has the right to elect the treatment of its claim or interest on a ballot to be notified if its ballot was not counted or was rejected, and therefore that its election may not be effective. Subdivisions (a) and (b) of this rule were amended in 2009 to change the time periods from five to seven days.

The purpose of the amendment was to conform the time periods in this rule to the 2009 time- related amendments to the Federal Rules of Bankruptcy Procedure. Throughout the Bankruptcy Rules, as well as the Local Bankruptcy Rules, most time periods that are shorter than thirty (30) days were changed so that the number of days is in multiples of seven, thereby reducing the likelihood that time periods will end on a Saturday or Sunday. Subdivision (a) of the rule was amended in 2016 to require the proponent of the plan, or party authorized to receive votes on the plan, to include in the certification to the Court any ballots not counted. This was done to enhance transparency and increase access to voting results.

24 Rule 3018-2 ACCEPTANCES OR REJECTIONS OF PLAN SOLICITED BEFORE PETITION IN CHAPTER 11 CASES A party seeking to obtain confirmation of any plan proposed and accepted before the commencement of a chapter 11 case must comply with the Procedural Guidelines for Prepackaged Chapter 11 Cases, which shall be available on the Court’s website (http://www.nysb.uscourts.gov/sites/default/files/3018-2-guidelines.pdf) Comment Procedures with respect to prepackaged chapter 11 plans were promulgated by General Order M-387. This rule was amended in 2013 to specify the title of the procedures promulgated by General Order M-387 and to state in the rule the link to the Court’s website where practitioners may access the governing procedures. The procedures set forth in the Procedural Guidelines for Prepackaged Chapter 11 Cases, which also may be obtained from the Clerk, may be further amended by the Court after giving notice and opportunity for comment as is appropriate.