The BCHI Interests fit within the definition of Intercompany Interests in the Plan
and thus would be classified in Class 8. Under the Plan, Intercompany Interests do not receive
any distribution.
NY 240,418,209v1 11
25. Although the Disclosure Statement and Plan are unclear as to what happens to the
common equity in the various subsidiaries of the Debtors, it appears that the Plan leaves the
Debtors significant flexibility to retain Intercompany Interests (such as the BCHI Interests).Plan, §§ 2.15, 6.17.
26. In addition, the Plan provides that the Debtors may engage in certain as-yet unidentified
“Restructuring Transactions,” which could include the retention by the Debtors of
their equity interests in the assets of certain Canadian subsidiaries or the transfer of assets of one
subsidiary to another subsidiary. The Disclosure Statement fails to disclose the specifics of these
Restructuring Transactions or the impact of such Restructuring Transactions on creditors.
'Courts of bankruptcy are essentially courts of equity, and their proceedings inherently are proceedings in equity.'
