The document which outlines the Chapter 11 exit strategy of the Debtor-In-Possession. It sets forth the new capital structure of the DIP and the treatment of the various classes of creditors and equity holders. The POR must be confirmed by the bankruptcy court before it can become effective. The DIP has the exclusive right to propose a plan within the first 120 days of the Chapter 11 case, subject to extension by the court. Specialized financing is often an integral part of a POR and may be critical to a company's successful emergence from bankruptcy.
The debtor in an involuntary case, has 120 days after the order for relief to file a plan of reorganization. After 120 days, without an extension being granted, creditors may file their plan of reorganization for the debtor. The plan must deal with all of the debts and obligations of the debtor and provide reasonable means for carrying out the plan.