They have no choice but to accept those terms. The company has no assets to liquidate, says so right in the plan, page 21, so it's "take this small payment or else":
The Debtor’s Liquidation Analysis follows: The Debtor essentially has only one asset - its proprietary software. The software is outdated and needs to be updated. Ultimately, the Debtor believes t hat t he software has no liquidation value. The costs of updating t he software is likely more than the costs of developing a similar software “from scratch” for a third party and would therefore not likely attract any interest in the marketplace. Asset: Software Listed Value: $2,500 Liquidation Value: $0 Liens/ Encumbrances: None Net Liquidation Value: $0 Available for Distribution to Creditors $0 NOTE: The Debtor has substantial net operating losses that it intends will be preserved through the reorganization process and be of some tax benefit to the company going forward. Those “NOL’s” are not transferable and would have no value in the event of a liquidation.