CMA sends to all creditors a written report on the creditors' meeting and the committee's recommendations. Thereafter, CMA sends creditors status reports on developments toward a plan for repayment of creditor claims. Through negotiations with the creditors' committee, the debtor company develops a plan for repayment of creditor claims. Each plan is different and unique to the character and status of each debtor company. However, each plan should represent the best results creditors can expect, considering the circumstances.
Plans frequently are compromise settlements , extension agreements or liquidating plans .
The plan is mailed to creditors with a ballot for creditors to indicate their consent. If consent is received from creditors holding in aggregate a requisite percentage of the debt, the plan becomes effective. CMA handles distributions to creditors provided under the plan. Through a successful plan, a debtor company gets relief from its unsecured trade debts. Creditors receive the payments they agreed to accept in exchange for satisfaction of their claims.