Artstock d/b/a Artist & Craftsman Supply - Chapter 11 Plan Terms

Plan Terms

Overview

• This is the Amended Plan of Reorganization of Artstock d/b/a Artist & Craftsman Supply dated June 9, 2026, filed in the United States Bankruptcy Court for the District of Maine, Case No. 25-20305.
• Artstock d/b/a Artist & Craftsman Supply (the “Debtor”) is the debtor and debtor-in-possession in this chapter 11 case, having commenced the Case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code on December 21, 2025 (the “Petition Date”).
  • The term “Debtor” refers to Artstock d/b/a Artist & Craftsman Supply in every capacity, including as a debtor and debtor-in-possession and as the reorganized debtor emerging from chapter 11 through the Plan.
• The Plan is a reorganization plan under chapter 11 of the Bankruptcy Code that provides for the payment of Allowed Claims against the Debtor and/or its Estate to the extent and on the terms and conditions set forth in the Plan.
• The Official Committee of Unsecured Creditors (the “Committee”) was appointed by the U.S. Trustee on January 12, 2026.
• Confirmation of the Plan is intended to and shall result in full and final satisfaction of any and all Claims or Interests that Holders may have against the Debtor and/or its Estate, as well as any defenses of any kind based on Claims provided for under the Plan or in existence prior to the Confirmation Date. All Holders of Claims and Interests are encouraged to read the Plan in its entirety.

Corporate Structure

• The Debtor shall remain a Maine for-profit business corporation after the Effective Date.
• The Debtor’s officers and directors on the Confirmation Date are expected to be the same officers and directors that existed during the course of the Case.

Plan Funding

• The Debtor projects to hold approximately $500,000.00 of cash on hand as of July 1, 2026, and will produce additional cash through continued operations of its fourteen (14) stores.
• Prior to the Petition Date, the Debtor explored obtaining financing to replace its line of credit with Cambridge Savings. Although the Debtor has been unable to obtain takeout financing as of the date of the Filing of the Plan, it may secure such financing in the future and could use the financing to pay certain obligations under the Plan.
• The Debtor intends to liquidate portions of its inventory at points in the future and to use the proceeds of the sales to fund operating expenses and obligations under the Plan.
• The Debtor will likely pursue various Causes of Action, including chapter 5 causes of action, and believes it will likely recover certain amounts; however, the proceeds from such recoveries are not expected to be material.

Post-Effective Date Financing

• From and after the Effective Date, the Debtor shall not incur, issue, authorize, or consummate any financing or capital-raising transaction resulting in the incurrence of indebtedness or the issuance of any equity interests of any kind, including, without limitation: (a) incurring funded debt; (b) issuing notes, bonds, debentures, or other debt securities; (c) borrowing under any revolving, term loan, asset-based, or similar credit facility; (d) entering into any sale-leaseback, factoring, or similar financing arrangement; or (e) issuing or selling any equity or equity-linked securities, except as expressly provided.
• Notwithstanding the foregoing, the Debtor may consummate one or more such transactions only to the extent the net Cash proceeds are applied solely to:
  • Refinance, repay, or otherwise satisfy in whole or in part the obligations owed to Cambridge Savings and/or any obligations secured by the Cambridge Collateral to the extent provided for by the Cambridge Loan Documents;
  • Provide the Debtor with additional financing to support working capital needs in an amount not to exceed $1,500,000.00, to be used exclusively for funding the operating business; and/or
  • Pay Allowed General Unsecured Claims in accordance with the Plan.
• At least fourteen (14) days prior to the closing of any such transaction, the Debtor shall notify Cambridge Savings and the Committee, describing the material terms and the anticipated allocation of net proceeds, including the amount, if any, to fund working capital requirements.
• Any transaction undertaken in violation of these provisions is void ab initio and of no force or effect as against the Debtor, its Estate, or the Holders of Claims treated under the Plan, and shall constitute a breach of the Plan.

Secured Claims of Cambridge Savings (Class 1)

• Prior to the Petition Date, the Debtor entered into a Credit Agreement with Cambridge Savings under which Cambridge Savings opened a line of credit with a maximum borrowing capacity of $4,000,000.00 (the “Cambridge Loan Documents”), secured by certain assets of the Debtor, including its inventory (the “Cambridge Collateral”).
  • The total amount outstanding as of the Petition Date equaled $1,346,370.00, exclusive of certain fees and collection costs (the “Cambridge Loan Balance Amount”). Premised on the value of the Cambridge Collateral, the Debtor believes the Class 1 Claims are fully secured.
  • Premised on payments made (or to be made under the terms of existing orders) over the course of the Case, the Cambridge Loan Balance Amount should be reduced to approximately $1,286,370.00 by the end of May 2026.
• In full and final satisfaction of the Allowed Class 1 Claims, Cambridge Savings shall be paid based on a fifteen (15) year amortization period, with the balance, after accounting for payments made, paid on the fifth (5th) anniversary of the Effective Date.
  • Payments shall be made monthly, with the first payment due on the first day of the first month after the Effective Date, accruing interest at a fixed rate equal to the prime rate of interest on the Effective Date plus one percent (1%).
  • In the event the Allowed Secured Claims in Class 1 equal the Cambridge Loan Balance Amount as adjusted, the monthly payments would equal approximately $12,108.
  • The Class 1 Claims shall continue to be secured by the Cambridge Collateral to the extent provided for by the Cambridge Loan Documents.
• In addition to the monthly payments, Cambridge Savings shall also receive twenty percent (20%) of the Net Disposable Income at the same time as payments are made to Class 7 Claimants (the “Cambridge Annual Payment”). In the event any Cambridge Annual Payments are made, the Class 1 Claims shall be re-amortized to account for them, thereby reducing the monthly payments.
• The Class 1 Claims are impaired, and Cambridge Savings is entitled to vote to accept or reject the Plan.

Secured Claims of the SBA (Class 2)

• Prior to the Petition Date, the Debtor entered into a loan agreement with the SBA (the “SBA Loan Documents”), under which the Debtor owed the SBA approximately $1,894,329.00 as of the Petition Date (the “SBA Loan Balance Amount”).
  • The obligations are secured by certain assets of the Debtor, including its inventory (the “SBA Collateral”); however, the SBA subordinated its interests in the SBA Collateral to Cambridge Savings pursuant to a subordination agreement. Premised on the value of the SBA Collateral and the SBA Loan Balance Amount, the Debtor believes the Class 2 Claims are fully secured.
• In full and final satisfaction of the Class 2 Claims, the Allowed Secured Claims of the SBA shall be reduced to an amount equal to the value of the SBA Collateral securing the Claims, premised on the Debtor’s intended use of the Assets, after accounting for the Class 1 Claims of Cambridge Savings (the “SBA Secured Claim Amount”).
  • The SBA Secured Claim Amount shall be paid in accordance with the SBA Loan Documents, provided that no default interest, late fees, and/or other fees and costs arising from a default (an “SBA Default Amount”) shall be owed or paid, unless any SBA Default Amount arises after the Effective Date premised on a monetary default occurring after the Effective Date.
  • The maturity date of the SBA Loan Documents shall be extended by ten (10) years, and the payments shall be amortized over the term of the loan as so extended.
  • Payments shall resume after the Effective Date as provided for by the SBA Loan Documents, as modified, meaning the maturity date shall be extended to the extent necessary to accommodate any missed payments owed to the SBA as of the Effective Date.
  • The Class 2 Claims shall be secured by all of the SBA Collateral that, as of the Effective Date, secured the Claims to the extent provided for by the SBA Loan Documents.
• The difference between the total amount owed to the SBA and the value of the SBA Collateral, if the Collateral is worth less than the amount owed, shall constitute a General Unsecured Claim in Class 7.
• The Class 2 Claims are impaired, and the SBA is entitled to vote to accept or reject the Plan.

Secured Claims of Art Supply Enterprises (Class 3)

• Prior to the Petition Date, the Debtor entered into a settlement agreement with Art Supply Enterprises under which the Debtor agreed to pay certain amounts for inventory purchased from Art Supply Enterprises (the “Art Supply Enterprises Settlement Documents”).
  • The obligations may be secured by certain assets of the Debtor to the extent provided by the Settlement Documents, which limit the collateral to inventory specifically purchased from Art Supply Enterprises (the “Art Supply Enterprises Collateral”); however, Art Supply Enterprises subordinated its interests to Cambridge Savings pursuant to a subordination agreement.
  • The total amount outstanding as of December 31, 2025 equaled $4,357,500.00 (the “Art Supply Enterprises Claim Amount”).
  • Premised on the value of the Art Supply Enterprises Collateral, the Debtor believes the Class 3 Claims are unsecured, as the Collateral had been sold as of the Petition Date. In the event it is determined the Collateral had some value as of the Petition Date, any difference between the amount owed and the value of the Collateral, if less, shall constitute a General Unsecured Claim in Class 7.
  • The Debtor believes Art Supply Enterprises does not hold the Class 3 Claims and that such Claims continue to be held, if by anyone, by a chapter 7 trustee in a separate bankruptcy proceeding.
• In full and final satisfaction of the Allowed Secured Class 3 Claims, Art Supply Enterprises shall be paid based on a twenty (20) year amortization period, with the balance, after accounting for payments made, paid on the seventh (7th) anniversary of the Effective Date.
  • Payments shall be made monthly, with the first payment due on the first day of the first month after the Effective Date, accruing interest at a fixed rate equal to the prime rate of interest on the Effective Date plus one percent (1%).
  • The Class 3 Claims shall continue to be secured by the Art Supply Enterprises Collateral to the extent provided for by the Settlement Documents.
• The Class 3 Claims are impaired, and Art Supply Enterprises is entitled to vote to accept or reject the Plan.

Secured Tax Claims (Class 4)

• Class 4 consists of the Allowed Secured Claims, if any, of the IRS and any other Claimants holding Secured Claims relating to tax obligations (the Debtor is not aware of any party asserting a Secured Claim for taxes other than the IRS).
  • Prior to the Petition Date, the IRS filed a tax lien against the Debtor securing tax obligations in the amount of $85,872.21 as of the Petition Date (the “IRS Lien”), which is junior to the liens of Cambridge Savings, the SBA, and Art Supply Enterprises.
  • Premised on the lien position, the Debtor believes the IRS does not hold a lien against the Debtor’s Assets and that the Claims of the IRS will be treated exclusively as Priority Tax Claims at best.
• In accordance with § 1129(a)(9) of the Bankruptcy Code, except as otherwise agreed, each Holder of an Allowed Secured Tax Claim shall receive deferred Cash payments over a period not to exceed five (5) years from the Petition Date.
  • Payments shall be made in equal, annual installments, each including simple interest accrued on the unpaid portion at the Federal Judgment Rate in effect as of the Effective Date; the Debtor reserves the right to pay any such Claim in full at any time on or after the Effective Date and before the expiration of the five-year period without premium or penalty.
  • The Class 4 Claims shall be secured by all of the Assets that, as of the Effective Date, secure the Claims.
• The difference between the total amount owed to the IRS, or any other party holding an Allowed Secured Tax Claim, and the value of the collateral securing such Claims, if the collateral is worth less, shall constitute a Priority Tax Claim.
• The Class 4 Claims are impaired, and the IRS and others in this Class are entitled to vote to accept or reject the Plan.

Priority Claims

• Priority Tax Claims: In accordance with § 1129(a)(9)(C) of the Bankruptcy Code, except as otherwise agreed, each Holder of an Allowed Priority Tax Claim shall receive deferred Cash payments over a period not to exceed five (5) years from the Petition Date, in equal annual installments, each including simple interest accrued on the unpaid portion at the Federal Judgment Rate in effect as of the Effective Date; the Debtor reserves the right to pay any such Claim in full at any time on or after the Effective Date and before the expiration of the five-year period without premium or penalty.
• Priority Wage Claims (Class 5): These are Prepetition Unsecured Claims for wages, salaries, or commissions, including vacation, severance, and sick leave pay and certain benefits, as described in §§ 507(a)(4) and (5) of the Bankruptcy Code, limited to $17,150.00 per individual.
  • Early in the Case, the Debtor filed the Emergency Motion for Authority to Pay Pre-Petition Wages, to Maintain Existing Insurance Coverage, and for Related Relief (the “Payroll Motion”), and pursuant to the order granting it (the “Payroll Order”), the Debtor paid certain Priority Wage Claims after the Petition Date.
  • Allowed Priority Wage Claims shall be satisfied in accordance with the Debtor’s policies that existed as of the Petition Date, and earned paid time off shall be utilized in accordance with policies and practices that existed before the Petition Date.
  • If an employee requests and is eligible for a cash payout relating to earned paid time off, the Distribution shall be limited by the $17,150.00 statutory maximum; any Allowed Priority Wage Claims exceeding that maximum shall constitute General Unsecured Claims in Class 7.
  • The Class 5 Claims are impaired, and Claimants are entitled to vote to accept or reject the Plan.
• Priority Non-Tax Claims, other than Priority Wage Claims (Class 6): These consist of Claims granted priority under § 507(a) of the Bankruptcy Code, other than under §§ 507(a)(4), (a)(5), and (a)(8).
  • The Class 6 Claims are impaired, and Claimants in Class 6 are entitled to vote to accept or reject the Plan.
  • To the extent any such Allowed Claims exist, and unless otherwise mutually agreed, each Holder shall receive Cash equal to the Holder’s Allowed Claim on the later of the Effective Date or the date the Claim becomes an Allowed Claim pursuant to a Final Order.

Administrative and Other Unclassified Claims

• Certain Claims are not classified and are Unimpaired, including Administrative Claims, Priority Tax Claims, and Priority Non-Tax Claims; Holders of Unclassified Claims do not vote on the Plan because they are automatically entitled to the treatment provided under the Bankruptcy Code or as agreed with the Debtor.
• Administrative Claims are divided into Non-Ordinary Course Administrative Claims (including Cure Claims, 503(b)(9) Claims, Professional Fee Claims, U.S. Trustee Fees, and Claims under §§ 503(b)(3)(D) and/or 503(b)(4)) and Ordinary Course Administrative Claims.
• Non-Ordinary Course Administrative Claims must be the subject of a motion for allowance Filed by the Non-Ordinary Course Administrative Claims Bar Date, which is sixty (60) calendar days after the Effective Date; Holders who fail to do so are forever barred. Each Allowed Non-Ordinary Course Administrative Claim shall be paid in Cash on the later of the Effective Date or fourteen (14) days after it becomes an Allowed Claim.
• Ordinary Course Administrative Claims require no request for payment and are satisfied by the Debtor in the ordinary course as they become due.
• 503(b)(9) Claims required proofs of claim by the General Bar Date (April 27, 2026 for most Creditors). Professional Fee Claims require a final fee application Filed no later than sixty (60) days after the Effective Date and remain subject to Bankruptcy Court approval. U.S. Trustee Fees are paid as required by 28 U.S.C. § 1930.
• The Claims Objection Deadline is ninety (90) days after the Effective Date, subject to extension on the Debtor’s motion.

General Unsecured Claims (Class 7)

• Class 7 consists of General Unsecured Claims that are not Unclassified Claims or provided for under any other Class, and includes any deficiency Claim arising from operation of § 506 of the Bankruptcy Code. For the avoidance of doubt, Class 7 Claims shall include, but not be limited to, the Claims of: (a) Adlerstein; (b) Art Supply Enterprises (after accounting for the Art Supply Enterprises Collateral); and (c) those set forth in the Schedules or Filed in a timely proof of Claim as General Unsecured Claims.
• In full and final satisfaction of all Allowed Class 7 Claims, and regardless of whether Class 7 votes to accept or reject the Plan, the Debtor shall make pro rata payments of Projected Net Disposable Income to Holders for a period of seven (7) years (the “Class 7 Payment Period”), payable on or before January 31, 2027, and on or before each successive January 31st until the making of the 7th payment.
  • With the 7th payment, the Debtor shall pay any remaining amounts outstanding to the Class 7 Claimants.
  • Payments during the Class 7 Payment Period shall equal: (i) during the first five years after the Effective Date, or until Class 1 Claims are paid in full, whichever occurs first, eighty percent (80%) of the amount of Projected Net Disposable Income set forth on Exhibit A — i.e., the Net Disposable Income reflected on Exhibit A as it may adjust based on the Debtor’s actual performance and after accounting for a reserve to fund operating expenses in the ordinary course (the “Net Disposable Income” or “NDI”)
  • At any time during the Class 7 Payment Period, the Debtor shall be entitled to pay the remaining amount of the Class 7 Claims. The Class 7 Claims shall not accrue interest.
• The Class 7 Claims are impaired, and Holders are entitled to vote to accept or reject the Plan.

Subordination Agreements

• Prior to the Petition Date, Art Supply Enterprises and Adlerstein each entered into Subordination and Intercreditor Agreements with Cambridge Savings, pursuant to which they agreed to direct any payments they receive to Cambridge Savings until the obligations of the Debtor to Cambridge Savings are fully satisfied (the “Subordination Agreements”).
• In accordance with the Subordination Agreements, any payments owed to Art Supply Enterprises and/or Adlerstein under the Plan shall be paid directly to Cambridge Savings.

Equity Interests (Class 8)

• Class 8 consists of any and all equity interests in the Debtor, all of which are held by Artstock Holding Company, Inc., which shall continue as the sole Interest Holder of the Debtor after the Confirmation Date. The equity Interests are impaired, and the Interest Holder is entitled to vote to accept or reject the Plan. (Note: the Plan’s classification table designates Equity Interests as “Class 9” and contains no “Class 8,” whereas the Plan’s descriptive and treatment provisions refer to “Class 8” — an apparent drafting inconsistency in the Plan.)
• While any obligations to Holders of Allowed Claims other than Class 8 remain outstanding, any and all value, payments, dividends, advances, redemptions, or other consideration of any kind received, realized, or retained, directly or indirectly, by the Interest Holder on account of its equity Interests shall be promptly turned over and paid to the Debtor for the sole benefit of, and distributed pro rata to, the Holders of Allowed General Unsecured Claims (Class 7) until such obligations are paid in full.
  • Any portion otherwise distributable to Adlerstein and/or Art Supply Enterprises on account of an Allowed Class 7 Claim shall be paid in accordance with the Subordination Agreements.
• No equity distributions shall be made to the Interest Holder premised on its Interests until all other Claims have been satisfied under the Plan, absent agreement between the Interest Holder and any Claimant otherwise entitled to the Distribution.

Change in Control

• A “Change in Control” means any transaction or series of related transactions pursuant to which there is a transfer, directly or indirectly, of: (a) all or substantially all of the Assets; or (b) a majority or controlling interest in equity in the Debtor, whether by sale, merger, consolidation, tender offer, recapitalization, or otherwise.
• Upon the consummation of a Change in Control, the Debtor shall, on the closing date and provided the transaction generates sufficient proceeds, pay in full in Cash all then-outstanding obligations to the Holders of Allowed General Unsecured Claims (Class 7), in an amount equal to the unpaid balance that would otherwise remain payable, thereby satisfying in full the Debtor’s obligations on account of Class 7 Claims.
  • In the event the transaction does not generate sufficient proceeds to pay all Holders in full, the proceeds shall be distributed pro rata against such Claims.
  • The required payment shall be: (a) calculated based on the unpaid amounts otherwise due as of the Change in Control closing; (b) paid pro rata based upon respective unpaid Allowed amounts; and (c) funded from the proceeds of, or concurrently with, the closing, or from other available Cash of the Debtor.
  • Any portion of the payment that would otherwise be distributed to Adlerstein and/or Art Supply Enterprises on account of an Allowed Class 7 Claim shall, in accordance with the Subordination Agreements, be made directly to Cambridge Savings until the obligations owing to Cambridge Savings are fully satisfied, after which any remaining amounts shall be distributed to the subordinated claimant.

Executory Contracts and Unexpired Leases

• Any and all executory contracts or unexpired leases that: (i) have not expired by their own terms on or prior to the Effective Date; (ii) have not been assumed, assumed and assigned, or rejected with court approval or by operation of law prior to the Effective Date; (iii) are not the subject of a pending motion to assume or assume and assign as of the Effective Date; or (iv) are not Rejected Contracts, are assumed by the Debtor as of the Effective Date (the “Assumed Contracts”).
  • A schedule of Assumed Contracts specifically identified by the Debtor, together with the applicable cure amounts (the “Schedule of Assumed Contracts”), is attached to the Plan as Exhibit B; additional Assumed Contracts subject to assumption by the terms of the Plan may not be specifically identified on Exhibit B.
• Unless rejected by prior order of the Bankruptcy Court or the subject of a pending rejection motion as of the Confirmation Date, any executory contracts and/or leases identified on Exhibit C shall be rejected as of the Confirmation Date (the “Rejected Contracts”).
• Rejection damage claims shall be classified as General Unsecured Claims and treated as Claims in Class 7 under the Plan.

Default and Remedies

• No default shall be deemed to have occurred under the Plan until: (i) written notice of an alleged default has been served on the Debtor and its counsel in accordance with the Plan’s notice provisions (the “Notice of Default”); and (ii) the Debtor has failed to cure the purported default within the applicable timeframe.
• Upon receipt of the Notice of Default, the Debtor shall have thirty (30) days to cure the alleged default.
• If the Debtor believes no default has occurred, it reserves the right to seek a determination from the Bankruptcy Court, in which case no default shall be deemed to have occurred until the Bankruptcy Court enters a Final Order finding that a default has occurred.
• In the event a default is deemed to have occurred, the Claimant’s sole remedy against the Debtor is for breach of the Plan.

Committee Oversight

• If the Debtor seeks a Post-Confirmation Plan Modification that adversely affects the treatment, Distributions, or rights of Holders of Allowed General Unsecured Claims, the Debtor shall first obtain the Committee’s written consent, not to be unreasonably withheld, prior to the effectiveness of any such modification.
• From and after the Effective Date and until all obligations under the Plan have been paid in full, the Debtor shall provide certain reporting (the “Reporting Package”) to the Committee (or, if dissolved, to a designated representative identified by a notice filed on the docket).
  • The Committee Professionals will execute a commercially standard non-disclosure agreement on the Confirmation Date, which will be filed not less than fourteen (14) days before the Confirmation Hearing and attached to the Plan as Exhibit D.
• At least fourteen (14) days prior to any Distribution based in whole or in part on Net Disposable Income, the Debtor shall deliver a written notice to the Committee (the “NDI Notice”) setting forth: (a) the Debtor’s good-faith calculation of NDI for the applicable period; (b) the resulting expected NDI payment amount(s) and proposed Distribution date; and (c) reasonable supporting detail sufficient to permit review of the calculation.
• If the Committee, within seven (7) days after receipt of the NDI Notice, provides written notice identifying a good-faith concern with the NDI calculation, the parties shall promptly meet and confer. The Debtor and the Committee consent to expedited consideration by the Bankruptcy Court, and either party may seek expedited relief if no resolution is reached; the Debtor shall not make the disputed portion of the NDI-based Distribution pending resolution, except as agreed in writing by the Committee or ordered by the Bankruptcy Court.
• The fees and expenses incurred by Committee Professionals shall not, for each twelve (12) month period post-Confirmation, exceed $10,000.00 in the aggregate (the “Annual Cap”); provided that: (a) the Debtor may consent to payment in excess of the Annual Cap; and (b) the Annual Cap shall not apply in the event the Committee, in good faith, seeks relief from the Bankruptcy Court regarding the Debtor’s performance of its obligations as they may impact recoveries for Class 7 Holders, in which case fees and expenses above the Annual Cap shall be subject to approval by the Bankruptcy Court for reasonableness.

Exculpation

• On or after the Effective Date, the Debtor, Robert Landry, Glenn Davis, and Bernstein, Shur, Sawyer & Nelson, P.A. (including its shareholders and employees) (collectively, the “Exculpation Parties”) shall not have or incur any liability for, and are expressly exculpated, released, and discharged from, any claim or any past or present actions taken or omitted to be taken between the Petition Date and the Effective Date under or in connection with, related to, effecting, or arising out of: (i) the Chapter 11 Case; (ii) the pursuit of confirmation of the Plan or any other plan between the Petition Date and the Effective Date; (iii) the formulation, preparation, dissemination, implementation, administration, confirmation, or consummation of the Plan; or (iv) any contract, instruction, release, or other agreement entered into or created in connection with the foregoing.
  • The exculpation excludes only actions or omissions determined by a court of competent jurisdiction (with such order becoming a final, non-appealable order) to be by reason of such party’s gross negligence, willful misconduct, criminal conduct, or fraud.

Discharge

• Except as otherwise provided in the Plan: (i) the rights afforded under the Plan and the treatment of all Claims and Interests shall be in exchange for and in complete satisfaction, discharge, and release of Claims (and any defenses thereto or based upon such Claims, including recoupment) and Interests of any nature against the Debtor, the Estate, and/or any of the Assets; (ii) on the Effective Date, all such Claims provided for under the Plan shall be satisfied, discharged, and released in full; and (iii) all Persons and entities shall be precluded from asserting against the Debtor, the Estate, their successors, or the Assets any Claims based upon any act, omission, transaction, or other activity occurring prior to the Confirmation Date, except as specifically authorized under the Plan with respect to Claims for which further proceedings are permitted.
• Entry of the Confirmation Order shall provide the Debtor the full effect of the discharge provided for under § 1141(d) of the Bankruptcy Code.

Injunction

• Except for obligations and remedies upon default issued under the Plan, all entities or persons who have held, hold, or may hold Claims or Interests that have been released, treated, or otherwise administered under the Plan, or that are subject to the Plan’s exculpation or injunction provisions, are permanently enjoined, from and after the Effective Date, from: (i) commencing or continuing any action or proceeding on account of such Claims or Interests; (ii) enforcing, attaching, collecting, or recovering by any means any judgment, award, decree, or order against the Debtor on account of such Claims or Interests; (iii) creating, perfecting, or enforcing any lien or encumbrance against the Debtor or its Assets or Estate on account of such Claims or Interests; (iv) commencing or continuing any action on account of any Claims or Interests released or settled under the Plan; and (v) acting in any manner that does not conform with the provisions of the Plan, to the full extent permitted by applicable law.