Getting rid of Alliacense may not be that easy.
D. Risks of Implementing Plan.
A significant part of the success of the Plan will be the cost-reduction benefits realized by the anticipated elimination of Alliacense as a service provider and licensing agent for the MMP and non-MMP Portfolios. New management may determine that that it would be in the best interest of the Reorganized Debtor to negotiate a new arrangement with Alliacense. There is no assurance that the Debtor and/or the Reorganized Company will be able to successfully terminate Alliacense’s involvement without incurring termination costs or legal fees to contest potential litigation by Alliacense as a result of the termination. The Debtor’s and/or the Reorganized Company’s inability to effect a successful termination of the Alliacense relationship could cause the Debtor or the Reorganized Company to fail or severely adversely affect the successful implementation of the Plan, and could have a material and adverse effect on its business, results of operations, and financial condition. The Committee has based its projections on the Debtor’s historical performance over the last three years. However, unforeseen variables may significantly impact the forecast causing actual
financial results to differ materially. p.45
DISCLOSURE STATEMENT FOR OFFICIAL COMMITTEE
OF UNSECURED CREDITORS’ PLAN OF REORGANIZATION