Objections to Confirmation
82
X.
FINANCIAL INFORMATION
84
XI.
ALTERNATIVES TO CONFIRMATION AND CONSUMMATION OF THE PLAN OF REORGANIZATION
84
A.
LIQUIDATION UNDER CHAPTER 7
84
B.
ALTERNATIVE PLAN OF REORGANIZATION
84
XII.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN
85
A.
CONSEQUENCES TO THE PLAN PROPONENTS
86
1.
Consequences to the Debtors
86
2.
Consequences to the Affiliated Plan Proponents
87
B.
CONSEQUENCES TO CERTAIN HOLDERS OF CLAIMS
88
1.
Consequences to Holders of 8.75% Senior Convertible Note Claims, and Holders of
General Unsecured Claims Against Charys Holding
89
2.
Consequences to Holders of Other Secured Claims Against C&B and General
Unsecured Against C&B
92
3.
Distributions in Discharge of Accrued and Unpaid Interest
93
4.
Ownership and Disposition of New Equity Interests
93
5.
Ownership and Disposition of New Secured Notes
94
6.
Tax Treatment of the Liquidating Trusts and Holders of Beneficial Interests
95
C.
INFORMATION REPORTING AND WITHHOLDING
97
XIII.
CONCLUSION
98
v
NO PERSON MAY GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS, OTHER THAN THE
INFORMATION AND REPRESENTATIONS CONTAINED IN THIS DISCLOSURE STATEMENT,
REGARDING THE CHAPTER 11 PLAN OF REORGANIZATION OR THE SOLICITATION OF
ACCEPTANCES OF THE PLAN.
THE DEADLINE FOR VOTING TO ACCEPT OR REJECT THE PLAN IS 4:00 P.M. (PREVAILING
EASTERN TIME) ON [DATE], UNLESS EXTENDED. TO BE COUNTED, YOUR BALLOT MUST BE
DULY COMPLETED, EXECUTED, AND ACTUALLY RECEIVED BY SUCH DEADLINE.
THIS DISCLOSURE STATEMENT HAS BEEN PREPARED IN ACCORDANCE WITH SECTION 1125 OF
THE BANKRUPTCY CODE AND NOT IN ACCORDANCE WITH FEDERAL OR STATE SECURITIES LAWS
OR OTHER NON- BANKRUPTCY LAW. PERSONS OR ENTITIES TRADING IN, OR OTHERWISE
PURCHASING, SELLING, OR TRANSFERRING SECURITIES OF CHARYS HOLDING COMPANY, INC.
OR CROCHET & BOREL SERVICES, INC. SHOULD NOT RELY UPON THIS DISCLOSURE STATEMENT
FOR SUCH PURPOSES AND SHOULD EVALUATE THIS DISCLOSURE STATEMENT AND THE PLAN IN
LIGHT OF THE PURPOSE FOR WHICH THEY WERE PREPARED.
THIS DISCLOSURE STATEMENT HAS NEITHER BEEN REVIEWED, APPROVED NOR DISAPPROVED BY
THE U.S. SECURITIES AND EXCHANGE COMMISSION, NOR HAS THE U.S. SECURITIES AND
EXCHANGE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE STATEMENTS
CONTAINED HEREIN.
THIS DISCLOSURE STATEMENT SUMMARIZES CERTAIN PROVISIONS OF THE PLAN, STATUTORY
PROVISIONS, DOCUMENTS RELATED TO THE PLAN, EVENTS IN THESE CHAPTER 11 CASES AND
FINANCIAL INFORMATION. ALTHOUGH THE PLAN PROPONENTS BELIEVE THAT THE PLAN AND
RELATED DOCUMENT SUMMARIES ARE FAIR AND ACCURATE, SUCH SUMMARIES ARE QUALIFIED
TO THE EXTENT THAT THEY DO NOT SET FORTH THE ENTIRE TEXT OF SUCH DOCUMENTS OR
STATUTORY PROVISIONS. THE STATEMENTS CONTAINED IN THIS DISCLOSURE STATEMENT ARE
MADE AS OF THE DATE HEREOF UNLESS ANOTHER TIME IS SPECIFIED HEREIN, AND THE
DELIVERY OF THIS DISCLOSURE STATEMENT SHALL NOT CREATE AN IMPLICATION THAT THERE
HAS BEEN NO CHANGE IN THE INFORMATION STATED SINCE THE DATE HEREOF. HOLDERS OF
CLAIMS SHOULD CAREFULLY READ THIS DISCLOSURE STATEMENT IN ITS ENTIRETY,
INCLUDING THE PLAN, PRIOR TO VOTING ON THE PLAN.
FOR THE CONVENIENCE OF HOLDERS OF CLAIMS AND EQUITY INTERESTS, THIS DISCLOSURE
STATEMENT SUMMARIZES THE TERMS OF THE PLAN. IF ANY