In a Chapter 11 case, the plan of reorganization is the final negotiated contract between the debtor and its creditors. The terms of the plan will govern the relationship between the parties after confirmation. Thus, the terms of the plan should be subject to a negotiation between the debtor and creditors that leads to a contract approved by the Bankruptcy Court.
Of course, a bankruptcy plan is no ordinary contract. It is an agreement that must be negotiated between multiple constituencies, all of which are looking out for their own best interest. Additionally, it is governed by the parameters of the Bankruptcy Code, and must be approved by a judge. More specifically, for the court to approve a Chapter 11 plan, it must contain certain information and details to satisfy the requirements of 11 U.S.C. § 1123.