8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

CONSOLIDATED FREIGHTWAYS CORPORATION

Commission File Number 1-12149

Incorporated in the State of Delaware

I.R.S. Employer Identification No. 77-0425334

805 Broadway, Suite 205

Vancouver, WA 98660

Telephone Number (360) 448-4000

Date of Report (Date of earliest event reported): December 14, 2004

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events

As of December 13, 2004, all conditions to effectiveness of the Consolidated Plan of Liquidation Dated July 1, 2004 (as amended, the “Plan”) filed by Consolidated Freightways Corporation of Delaware and its affiliated debtors (the “Debtors”) in their Chapter 11 cases pending in the United States Bankruptcy Court for the Central District of California, Riverside Division (the “Bankruptcy Court”) have been satisfied or waived, and therefore, the effective date of the Plan is December 13, 2004. A copy of the Plan as confirmed by the Bankruptcy Court on November 22, 2004 is attached hereto as Exhibit 2.1. A copy of the order entered by the Bankruptcy Court confirming the Plan is attached hereto as Exhibit 99.1. A copy of the notice of confirmation and effective date is attached hereto as Exhibit 99.2.

Pursuant to the Plan, all of the shares of capital stock of the Consolidated Freightways Corporation and the Debtors have been canceled. Also pursuant to the Plan, The Trust for Certain Creditors of Consolidated Freightways Corporation and Certain Affiliates (the “Trust”) was created as of December 13, 2004 pursuant to a Liquidation Trust Agreement entered into as of December 8, 2004 by and among the Debtors, the Official Committee of Creditors Holding Unsecured Claims, the Oversight Committee (as defined therein), K. Morgan Enterprises (the “Trustee”) and Kerry K. Morgan. The Trust is not operating a continuing trade or business but rather was formed solely to liquidate the remaining non-cash assets of the Debtors pursuant to the Plan and to make the distributions to creditors required by the Plan. Under the Plan, creditors who hold allowed pre-bankruptcy general unsecured claims will receive beneficial interests in the Trust.

Item 9.01. Exhibits.

(c) Exhibits.

Exhibit Number	Description of Exhibit
2.1	Consolidated Plan of Liquidation dated July 1, 2004 (as amended), as confirmed by the United States Bankruptcy Court for the Central District of California, Riverside Division on November 22, 2004
99.1	Order Confirming Plan Dated November 22, 2004
99.2	December 14, 2004 Notice of Confirmation and Effective Date of Debtors’ Consolidated Plan of Liquidation Dated July 1, 2004 (as amended)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: December 21, 2004

Consolidated Freightways Corporation
By:	/s/    KERRY K. MORGAN
	Kerry K. Morgan Agent, on behalf of Consolidated Freightways Corporation

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
2.1	Consolidated Plan of Liquidation dated July 1, 2004 (as amended), as confirmed by the United States Bankruptcy Court for the Central District of California, Riverside Division on November 22, 2004
99.1	Order Confirming Plan Dated November 22, 2004
99.2	December 14, 2004 Notice of Confirmation and Effective Date of Debtors’ Consolidated Plan of Liquidation Dated July 1, 2004 (as amended)

EX-2.1

Exhibit 2.1

1	LATHAM & WATKINS LLP
	Michael S. Lurey, CA State Bar No. 048235
2	Gregory O. Lunt, CA State Bar No. 173297
	633 West Fifth Street, Suite 4000
3	Los Angeles, California 90071-2007
	Telephone: (213) 485-1234
4	Facsimile: (213) 891-8763

5
	Counsel for Consolidated Freightways Corporation
6	of Delaware, et al., Debtors and Debtors-in-Possession

7
8	UNITED STATES BANKRUPTCY COURT
9	CENTRAL DISTRICT OF CALIFORNIA
10	RIVERSIDE DIVISION

11	In re	Case No.: RS 02-24284 MG
12	CONSOLIDATED FREIGHTWAYS	Chapter 11
	CORPORATION OF DELAWARE, et al.,
13	Debtors.	(Jointly Administered with Case Nos.
14		RS-02-24289-MG; RS-02-24287-MG;
		RS-02-24293-MG; RS-02-24294-MG;
15	Fed Tax I.D. No. 94-1444797	and RS-02-24295-MG
16		CONSOLIDATED PLAN OF
		LIQUIDATION DATED JULY 1, 2004
17		(AS AMENDED THROUGH THE
		CONFIRMATION HEARING)
18
		Confirmation Hearing
19		Date:	October 20, 2004
		Time:	2:00 P.M.
20		Place:	Courtroom 301
			3420 Twelfth Street
21			Riverside, California 92501
22		Judge:	Hon. Mitchel R. Goldberg

23	TO THE HONORABLE MITCHEL R. GOLDBERG, UNITED STATES BANKRUPTCY
	JUDGE, THE UNITED STATES TRUSTEE AND OTHER INTERESTED PARTIES
24	AND THEIR ATTORNEYS OF RECORD:
25	/ / /
26	/ / /
27	/ / /
28	/ / /

1	TABLE OF CONTENTS
2			PAGE
3
4	ARTICLE I DEFINITIONS, INTERPRETATION AND RULES OF CONSTRUCTION		2
5
	1.1	Scope of Definitions.	2
6
	1.2	Definitions.	2
7
	1.3	Rules of Interpretation.	16
8
	1.4	Computation of Time.	17
9
	ARTICLE II CLASSIFICATION OF CLAIMS AND INTERESTS		18
10
	2.1	General.	18
11
	2.2	Unclassified Claims.	18
12
13	2.3	Unimpaired Classes of Claims and Interests (deemed to have accepted the Plan, and therefore, not entitled to vote on the Plan).	18
14	2.4	Classes of Secured Claims (may or may not be impaired and entitled to vote to accept or reject the Plan).	18
15
16	2.5	Impaired Classes of Claims and Interests (entitled to vote to accept or reject the Plan).	19
17 18	2.6	Classes of Claims and Interests Receiving No Distributions (deemed to have rejected the Plan and, therefore, not entitled to vote on the Plan).	19
19	ARTICLE III TREATMENT OF UNCLASSIFIED CLAIMS		19
20	3.1	Administrative Claims.	19
21	3.2	Professional Claims.	20
22	3.3	Priority Tax Claims.	20
23	3.4	Trust Fund Claims.	21
24	ARTICLE IV TREATMENT OF CLASSIFIED CLAIMS AND INTERESTS		21
25	4.1	Class 1 (Secured Claims).	21
26	4.2	Class 2 (Priority Non-Tax Claims).	26
27	4.3	Class 3 (Convenience Claims).	26
28	4.4	Class 4 (Unsecured Claims).	27

i

1	4.5	Class 5 (Subordinated Pension Fund Claims).	28
2	4.6	Class 6 (Subordinated Claims).	28
3	4.7	Class 7 (LLC Entity Claims).	29
4	4.8	Class 8 (Non-Debtor Affiliate Claims).	29
5	4.9	Class 9 (CF Bermuda Claims).	29
6	4.10	Class 10 (Inter-Debtor Claims).	30
7	4.11	Class 11 (Interests in CFC).	30
8	4.12	Class 12 (Interests in CFCD).	31
9	4.13	Class 13 (Interests in CF Airfreight).	31
10	4.14	Class 14 (Interests in CF MovesU).	31
11	4.15	Class 15 (Interests in Leland).	31
12	4.16	Class 16 (Interests in Redwood).	31
13	4.17	Duplicate Claims against Multiple Debtors.	32
14	4.18	Substantive Consolidation.	32
15	ARTICLE V TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES		32
16
	5.1	Assumption; Assumption and Assignment.	32
17
	5.2	Cure Payments; Assurance of Performance.	33
18
19	5.3	Objections to Assumption of Executory Contracts and Unexpired Leases.	34
20	5.4	Rejection of Executory Contracts and Unexpired Leases.	35
21	5.5	Approval of Rejection; Rejection Damages Claims Bar Date.	35
22	ARTICLE VI MEANS FOR EXECUTION AND IMPLEMENTATION OF THE PLAN		36
23
	6.1	Plan Implementation.	36
24
	6.2	Sources of Payment.	36
25
	6.3	Vesting of Assets.	36
26
	6.4	Cancellation of Existing Instruments and Other Documents.	36
27
	6.5	Objections to Claims.	37
28
	6.6	Creation of the Trust.	38

ii

1	6.7	Appointment of Disbursing Agent.	39
2	6.8	Creation of the Oversight Committee.	40
3	6.9	Termination of Committee.	40
4	6.10	Cessation of the Business Operations of the Debtors.	40
5	6.11	Dissolution of the Debtors.	41
6	6.12	Compliance with ACC Settlement	41
7	6.13	Closing of the Cases.	42
8	ARTICLE VII THE TRUST		42
9	7.1	Transfer of the Trust Property to the Trust.	42
10	7.2	Purposes of the Trust.	42
11	7.3	Trust Agreement.	43
12	7.4	Operations of the Trust.	43
13	7.5	Supervision by Oversight Committee.	47
14	7.6	The Trustee.	48
15	7.7	Payment of Trust Expenses.	48
16	7.8	Distributions.	48
17	7.9	No Payment of Transfer-Related Fees to the United States Trustee.	48
18	7.10	Limitations on Payments to Certain Professionals	49
19	7.11	Trust Books And Records.	50
20	7.12	Limitations on Liability.	50
21	7.13	No Credit Reporting.	51
22	7.14	United States Federal Income Tax Treatment of the Holders of Trust Beneficial Interests.	51
23
	7.15	Termination of the Trust.	52
24
	ARTICLE VIII OVERSIGHT COMMITTEE		53
25
	8.1	Oversight Committee As Representative Of Creditors.	53
26
	8.2	Oversight Committee Procedures.	53
27
	8.3	No Oversight Committee Compensation.	53
28
	8.4	Retention Of Professionals by the Oversight Committee.	53

iii

1	8.5	Limitations on Oversight Committee Liability.	54
2	8.6	Termination Of Oversight Committee.	54
3	ARTICLE IX PAYMENTS AND DISTRIBUTIONS		55
4	9.1	Payments and Distributions in General.	55
5	9.2	Priority of Payments and Distributions From The Trust.	55
6	9.3	Distributions.	56
7	9.4	Distributions to Classes 4, 5 and 6 Pro Rata.	56
8	9.5	Initial and Supplemental Distributions and Record Dates for Distributions to Class 4.	56
9
	9.6	Minimum Distribution Amount for Class 4.	57
10
11	9.7	Payments and Distributions to Holders of Disputed Claims Which Become Allowed Claims.	58
12	9.8	Reserve for Disputed Claims.	58
13	9.9	Delivery of Payments and Distributions in General.	59
14	9.10	Cash Payments.	59
15	9.11	No Interest on Claims.	60
16	9.12	Minimum Amounts of Distributions.	60
17	9.13	Surrender of Instruments.	60
18	9.14	Undeliverable Payments and Distributions.	61
19	9.15	No Duplicate Distributions.	62
20	9.16	Final Distribution.	62
21	9.17	Credit Against Distributions to the PBGC.	62
22	9.18	No Distributions to Holders of Claims in Classes 7 through 9 or Interests in Classes 10 through 15.	63
23
	9.19	Compliance with Tax Requirements.	63
24
	9.20	Setoffs.	63
25
	ARTICLE X OTHER POST-CONFIRMATION LITIGATION		65
26
	10.1	Retention and Enforcement of Causes of Action.	65
27
	10.2	Prosecution of Causes of Action and Litigation Recoveries.	65
28
	ARTICLE XI CONFIRMATION AND EFFECTIVE DATE CONDITIONS		65

iv

1	11.1	Filing of Appendix and Other Documents in Support of Confirmation.	65
2
	11.2	Conditions to Confirmation.	65
3
	11.3	Conditions to Effective Date.	66
4
	11.4	Waiver of Conditions to Confirmation or to the Effective Date.	67
5
	11.5	Termination of Plan for Failure To Become Effective.	67
6
	11.6	Notice of Effective Date.	67
7
	ARTICLE XII EFFECT OF CONFIRMATION		68
8
	12.1	Jurisdiction of Court.	68
9
	12.2	Binding Effect.	68
10
	12.3	Releases by the Debtors.	68
11
	12.4	Release of GE Capital and Injunction.	69
12
	12.5	Debtors’ Releases Include Waiver of Unknown Claims.	71
13
	12.6	Limitation of Liability.	71
14
	12.7	Good Faith.	72
15
	12.8	Stays Remain in Effect.	72
16
	12.9	Injunctions.	73
17
	12.10	No Discharge.	73
18
	12.11	Effect of Releases or Exculpation as to the Pension Fund.	74
19
	ARTICLE XIII RETENTION OF JURISDICTION		74
20
	ARTICLE XIV ACCEPTANCE OR REJECTION OF THE PLAN		77
21
	14.1	Persons Entitled to Vote.	77
22
	14.2	Acceptance by Impaired Classes.	77
23
	14.3	Request for Non-Consensual Confirmation.	78
24
	ARTICLE XV MISCELLANEOUS PROVISIONS		78
25
	15.1	Other Documents and Actions.	78
26
	15.2	No Further Corporate Action Required.	78
27
	15.3	Confirmation of All Cases.	79
28
	15.4	Amendment or Modification of the Plan.	79

v

1	15.5	Revocation of the Plan.	79
2	15.6	Extension of Deadlines in the Plan.	80
3	15.7	Governing Law.	80
4	15.8	No Admissions.	80
5	15.9	No Liability for Solicitation or Participation.	80
6	15.10	Severability of Plan Provisions.	80
7	15.11	Post-Effective Date Professional Services.	81
8	15.12	Exemption from Certain Transfer Taxes.	81
9	15.13	Section 1145 Exemption.	81
10	15.14	No Impact on Contractually Subordinated Claims.	82
11	15.15	Saturday, Sunday or Legal Holiday.	82
12	15.16	Payment of Statutory Fees.	82
13	15.17	Exhibits.	82
14	15.18	Waiver of Federal Rule of Civil Procedure 62(a).	83
15	15.19	Binding Effect.	83
16	15.20	Standing of Committee and Oversight Committee.	83
17	15.21	Headings.	83
18
19
20
21
22
23
24
25
26
27
28

vi

1	INTRODUCTION
2	Consolidated Freightways Corporation of Delaware (defined herein as “CFCD”),
3	together with its affiliated debtors, Consolidated Freightways Corporation (defined herein as
4	“CFC”), Redwood Systems, Inc., Leland James Service Corporation, CF Airfreight Corporation
5	and CF MovesU.com Incorporated (collectively with CFCD, the “Debtors,” and each a
6	“Debtor”) hereby propose the following Consolidated Plan of Liquidation for the resolution of
7	the outstanding Creditor Claims against and equity Interests in the Debtors. The Debtors are the
8	proponents of the Plan within the meaning of section 1129 of the Bankruptcy Code. All
9	capitalized terms not defined in this Introduction have the meanings given to them in
10	section 1.2.1 Reference is made to the Disclosure Statement for a discussion of the Debtor’s
11	history, business, properties and results of operations, and for a summary of the Plan and certain
12	related matters. The Debtors believe that the business of the Debtors cannot be reorganized. The
13	Plan proposes to liquidate all of the remaining Assets of the Debtors through a liquidating trust.
14	Under the Plan, Holders of Allowed Claims will receive distributions of Cash or other property
15	as described in Article IX below.
16	Holders of Interests in CFC, whether or not such Interests become Allowed
17	Interests, will not receive any distributions of Cash or other property under the Plan. Because
18	Holders of Interests will not receive any distributions of Cash or other Property, they are deemed
19	to reject the Plan, and will not be solicited to vote to accept or reject the Plan as set forth in
20	section 14.1, below.
21	Under section 1125(b) of the Bankruptcy Code, a vote to accept or reject the Plan
22	cannot be solicited from Holders of Claims until such time as the Disclosure Statement has been
23	approved by the Court. All Holders of Claims are encouraged to read the Plan and the
24	Disclosure Statement in their entirety before voting to accept or reject the Plan. To the extent the
25	Disclosure Statement is inconsistent with the Plan, the Plan will govern. No materials, other than
26	the Disclosure Statement and any exhibits and schedules attached thereto or referenced therein,
27
28	1        As set forth in section 1.3.2 of the Plan, references in the Plan to “sections” shall refer to sections of the Plan unless otherwise stated or the context otherwise requires.

1

1	have been approved for use in soliciting acceptances or rejections of the Plan. The Debtors
2	expressly reserve the right to alter, amend, modify, revoke, or withdraw the Plan as set forth in
3	section 1127 of the Bankruptcy Code, Bankruptcy Rule 3019, and sections 15.4 and 15.5 of the
4	Plan, with the Consent of the Committee to the extent required in sections 15.4 and 15.5.
5	ARTICLE I
6	DEFINITIONS, INTERPRETATION AND RULES OF CONSTRUCTION
7	1.1    Scope of Definitions.
8	For the purposes of the Plan, except as expressly provided to the contrary in the
9	Plan or unless the context otherwise requires, all capitalized terms not otherwise defined shall
10	have the meanings given to them in section 1.2 of the Plan. Any term used in the Plan that is not
11	defined herein, but is defined in the Bankruptcy Code or the Bankruptcy Rules, shall have the
12	meaning given to that term in the Bankruptcy Code or the Bankruptcy Rules.
13	1.2    Definitions.
14	In addition to such other terms as are defined in other sections of the Plan, the
15	following terms (which appear in the Plan as capitalized terms) have the following meanings as
16	used in the Plan:
17	1.2.1     ACC means American Casualty Company of Reading,
18	Pennsylvania.
19	1.2.2     ACC Settlement has the meaning given to such term in
20	section 6.12 of the Plan.
21	1.2.3     ACC Settlement Amount means $3,975,000, as defined in
22	section 6.12 of the Plan.
23	1.2.4     ACC Surety Bonds mean certain surety bonds issued by ACC,
24	which assured certain customers using the Debtors’ freight services that the customers would be
25	paid Non-Contract Claims up to $5,000 per Claim.
26	1.2.5     Administrative Claim means a Claim for costs and expenses of
27	administration allowed under section 503(b) of the Bankruptcy Code and referred to in
28	section 507(a)(1) of the Bankruptcy Code, including, without limitation: (a) the actual and

2

1	necessary costs and expenses incurred after the Petition Date of preserving the Consolidated
2	Estate and operating the business of any Debtor (such as wages, salaries or commissions for
3	services and payments for inventory); (b) any indebtedness or obligations incurred or assumed
4	by a Debtor in its capacity as a debtor-in-possession, in connection with the conduct of its
5	business, including without limitation, the acquisition or lease of property or an interest in
6	property or the receipt of services; (c) compensation for legal, financial advisory, accounting and
7	other services and reimbursement of expenses awarded or allowed under sections 330(a) or 331
8	of the Bankruptcy Code; and (d) all fees and charges assessed against the Consolidated Estate
9	under 28 U.S.C. § 1930. The term “Administrative Claim” does not include a “Professional
10	Claim” or a “GE Capital Claim.”
11	1.2.6     Allowed means, with respect to any Claim or Interest, (i) a Claim
12	against or Interest in any Debtor to the extent that a proof of the Claim or Interest is timely Filed,
13	or is deemed Filed, under applicable law or pursuant to a Final Order of the Court, (ii) any Claim
14	or Interest which has been duly listed by the Debtor in its Schedules, as liquidated in amount and
15	not disputed or contingent and with respect to which no proof of Claim or Interest has been
16	Filed, (iii) any Claim or Interest the amount and existence of which have been determined by
17	(a) a final order of a court of competent jurisdiction other than the Court, pursuant to the Plan,
18	(b) a Final Order of the Court, or (c) an Order of the Court which would be a Final Order except
19	that an appeal has been taken from such Order, provided that no stay of such Order has been
20	issued, or (iv) any Claim which the Debtors and the Committee or the Oversight Committee,
21	jointly, agree that they will not object to and File and serve a notice of such non-objection,
22	whether or not the deadline to object to such Claim has otherwise expired, provided, however,
23	that any Claim or Interest which is allowed solely for purposes of voting to accept or reject the
24	Plan pursuant to an Order of the Court shall not be deemed to be an “Allowed” Claim or
25	“Allowed” Interest hereunder. If any party in interest Files an objection to a proof of Claim or
26	Interest within the time fixed by the Court, the Claim or Interest shall be Allowed only to
27	the extent of (i) any amount of such Claim or Interest to which the party did not object; and (ii) any
28	amount otherwise authorized by Final Order or by the Plan. Allowed as to Administrative

3

1	Claims, Priority Tax Claims, Secured Claims and Pre-Petition Unsecured Claims has correlative
2	meanings.
3	1.2.7    Allowed Class ... Claim means an Allowed Claim in
4	the designated Class.
5	1.2.8     Appendix means a volume of exhibits to the Plan Filed in support
6	of the Plan not less than ten (10) days prior to the Ballot Deadline.
7	1.2.9     Assets mean all legal or equitable interests of the Consolidated
8	Estate in any and all real or personal property of any nature, including any real estate, buildings,
9	structures, improvements, privileges, rights, easements, leases, subleases, licenses, goods,
10	materials, supplies, furniture, fixtures, equipment, work in process, accounts, chattel paper, cash,
11	deposit accounts, reserves, deposits, contractual rights, intellectual property rights, claims,
12	Causes of Action, securities, investments and any other general intangibles, and the proceeds,
13	products, offspring, rents or profits thereof, including all assets of any of the Debtors constituting
14	“property of the estate” as described in the Bankruptcy Code section 541.
15	1.2.10     Assumed Executory Contracts means those executory contracts
16	and unexpired leases to be assumed by the Debtors and assigned to the Trust or to another
17	assignee as identified in an exhibit in the Appendix.
18	1.2.11     Avoidance Actions means all avoiding powers and all rights and
19	remedies under, and related to, Bankruptcy Code sections 544, 545, 547, 548, 549 or 551, any
20	fraudulent conveyance, fraudulent transfer or preference laws, and all similar non-bankruptcy
21	laws.
22	1.2.12     Ballot means the ballot which accompanies the Plan and which
23	Holders of Claims entitled to vote to accept or reject the Plan must submit in accordance with
24	section 14.2 of the Plan.
25	1.2.13     Ballot Deadline means the deadline set by the Court for the
26	Holders of Claims to vote to accept to accept or reject the Plan by submitting their Ballots.
27	1.2.14     Bankruptcy Code means title 11 of the United States Code, as
28	now in effect or hereafter amended if such amendments are made applicable to the Cases.

4

1	1.2.15     Bankruptcy Rules means the Federal Rules of Bankruptcy
2	Procedure, as applicable from time to time in the Cases.
3	1.2.16     Bar Date means the deadline established by the Court for Filing
4	any proof of Claim against the Debtor in any of the Cases. The Bar Date was (i) February 7,
5	2003 for all proofs of Claim except as set forth in clauses (ii), (iii) or (iv) of this sentence;
6	(ii) March 3, 2003 for proofs of Claim by governmental entities; (iii) March 7, 2003 for proofs of
7	Claim by co-debtors, sureties and guarantors who are authorized to file proofs of Claim under
8	section 501(b) of the Bankruptcy Code and Bankruptcy Rule 3005; and (iv) for Holders of
9	Claims arising from or out of the rejection of executory contracts or unexpired leases, the
10	Debtors’ recovery pursuant to an Avoidance Action, or the incurrence of certain taxes which
11	arise from actions taken after the expiration of the applicable Bar Date, the later of (1) the
12	otherwise applicable Bar Date or (2) the first Business Day that is at least thirty (30) calendar
13	days after (a) the mailing to the Creditor of notice of the entry of the order first approving the
14	rejection of such contract or lease, (b) the mailing to the Creditor of notice of the entry of an
15	order or judgment avoiding a transfer, or (c) the date any relevant tax Claim first arises.
16	1.2.17     BNSF means Burlington Northern and Santa Fe Railway
17	Company.
18	1.2.18     Business Day means any day other than a Saturday, a Sunday or a
19	“legal holiday” (as defined in Bankruptcy Rule 9006(a)).
20	1.2.19     Canada Affiliates means the Debtors’ non-debtor direct and
21	indirect subsidiaries organized under the laws of Canada or its political subdivisions, as set forth
22	in Exhibit “A” to this Plan.
23	1.2.20     Cases means the above-captioned cases commenced by the
24	Debtors under Chapter 11 of the Bankruptcy Code that are pending before the Court and which
25	have been substantively consolidated with one another under the above captioned
26	Case No. RS 02-24284 MG pursuant to the Consolidation Order.
27	1.2.21     Cash means currency, a certified check, a cashier’s check or a wire
28	transfer of good funds from any source, or a check issued by any Person making any Distribution

5

1	under the Plan drawn on funds in the Trust, denominated in United States dollars.
2	1.2.22     Causes of Action means any and all claims or causes of action
3	which any Debtor and/or the Consolidated Estate has or asserts against any Person, including,
4	without limitation, any claim or cause of action arising prior to the Petition Date or after the
5	Petition Date, any Avoidance Action, and any claim or cause of action against insiders or
6	affiliates of any Debtor, and those against insiders or affiliates of such insiders or affiliates and
7	entities controlled by them.
8	1.2.23     CF Airfreight means CF Airfreight Corporation, a Delaware
9	corporation and a Debtor.
10	1.2.24     CF Bermuda means CF Risk Management Services Ltd., an entity
11	organized under the laws of Bermuda.
12	1.2.25     CFC means Consolidated Freightways Corporation, a Delaware
13	corporation and a Debtor.
14	1.2.26     CFC Common Stock means the common stock ($.01 par value) of
15	CFC.
16	1.2.27     CFCD means Consolidated Freightways Corporation of Delaware,
17	a Delaware corporation and a Debtor.
18	1.2.28     CF MovesU means CF MovesU.com Incorporated, a Delaware
19	corporation and a Debtor.
20	1.2.29     Claim means a claim against any Debtor, whether or not asserted
21	or Allowed, as defined in section 101(5) of the Bankruptcy Code.
22	1.2.30     Class means a class of Claims or Interests designated pursuant to
23	the Plan.
24	1.2.31     Clerk means the Clerk of the Court.
25	1.2.32     Collateral means any Assets of any Debtor which are subject to a
26	Lien.
27	1.2.33     Committee means the Official Committee of Creditors Holding
28	Unsecured Claims appointed in the Cases by the Office of the United States Trustee, as its

6

1	composition may be changed from time to time by the addition, resignation or removal of its
2	members.
3	1.2.34     Commutation Agreement means that certain Commutation
4	Agreement to be entered into by and between CFCD and CF Bermuda.
5	1.2.35     Confirmation means entry by the Court of the Confirmation
6	Order.
7	1.2.36     Confirmation Date means the date on which the Court enters the
8	Confirmation Order on the Docket.
9	1.2.37     Confirmation Hearing means the hearing held by the Court to
10	consider confirmation of the Plan pursuant to Bankruptcy Code section 1128, including any
11	continuances thereof.
12	1.2.38     Confirmation Order means the Order of the Court confirming the
13	Plan under section 1129 of the Bankruptcy Code.
14	1.2.39     Consolidated Estate means the consolidated estates of the Debtors
15	created in the Cases under section 541 of the Bankruptcy Code and by operation of the
16	Consolidation Order.
17	1.2.40     Consolidation Order means the “Order: (1) Approving Motion to
18	(I) Approve Stipulation to Settle Consolidation Motion and Related Claims; (ii) Allow Certain
19	Pre-Petition Claims; (iii) Dismiss the LLC Debtors’ Chapter 11 Cases; and (iv) Substantively
20	Consolidate the CF Debtors’ Estates; etc.” entered by the Court on April 27, 2004, ordering,
21	among other things, the substantive consolidation of the Debtors’ estates into the Consolidated
22	Estate.
23	1.2.41     Consolidation Stipulation means the “Stipulation to Settle
24	Consolidation Motion and Related Claims” among the Debtors, CFCD 2002 LLC, CFCD 2002
25	Member LLC, CFCD 2002A LLC, CFCD 2002A Member LLC, the multiemployer pension
26	funds which party thereto, (defined in the Consolidation Stipulation as the “Pension Fund
27	Parties”) and the PBGC, in the form approved pursuant to the Consolidation Order. A copy of
28	the Consolidation Stipulation is an exhibit in the Appendix.

7

1	1.2.42     Convenience Claim has the meaning assigned to such term in
2	section 4.3.
3	1.2.43     Court means the United States Bankruptcy Court for the Central
4	District of California, Riverside Division, or, if such court ceases to exercise jurisdiction over the
5	Cases or any proceedings arising is such Cases, such court or adjunct thereof that exercises
6	jurisdiction over the Cases or such proceedings in lieu of the United States Bankruptcy Court for
7	such District.
8	1.2.44     Creditor means the Holder of a Claim.
9	1.2.45     Debtor and Debtors have the meanings given to such terms in the
10	Introduction.
11	1.2.46     Debtors’ Releasees has the meaning given to such term in
12	section 12.3 of the Plan.
13	1.2.47     Debtors-in-Possession means the Debtors, when acting in the
14	capacity of the representative of the Consolidated Estate in the Cases.
15	1.2.48     Defined Benefit Pension Plan means the Consolidated
16	Freightways Corporation Pension Plan, a tax qualified defined benefit pension plan formerly
17	sponsored by, or a member of the Debtors’ controlled group, covered by Title IV of the
18	Employee Retirement Income Security Act (“ERISA”), as amended, 29 U.S.C. §§ 1301 et. seq.
19	(1994 & Supp. V 2000), that was involuntarily terminated by the PBGC.
20	1.2.49     DIP Credit Agreement means the certain Debtor in Possession
21	Credit Agreement dated as of September 9, 2002, among the Debtors and GE Capital, as
22	amended, supplemented, or otherwise modified from time to time.
23	1.2.50     DIP Facility means the debtor-in-possession secured financing
24	facility provided to the Debtors by GE Capital pursuant to the DIP Credit Agreement, authorized
25	by the Court pursuant to the Final Order (I) Authorizing Post-Petition Financing on a Secured
26	and Superpriority Basis etc. that was entered by the Court on October 29, 2002, and all
27	subsequent Orders approving amendments to the debtor-in-possession secured financing facility.
28	1.2.51     Disallowed means, with respect to any Claim or Interest, any

8

1	Claim or Interest (i) proof of which was required to be Filed by the Bankruptcy Code or an Order
2	of the Court but as to which no proof of Claim or Interest was timely or properly Filed, (ii) which
3	has been withdrawn in whole or in part, by agreement between the Debtors or the Trust and the
4	Holder thereof or unilaterally by the Holder thereof, or (iii) which has been disallowed, in whole
5	or in part, by Final Order. In case a Claim is Disallowed in part, the Claim may be an Allowed
6	Claim with respect to amounts asserted under the Claim which have not been Disallowed.
7	1.2.52     Disbursing Agent means an agent employed by the Trust, if any,
8	to make Distributions to the Holders of Allowed Claims pursuant to the Plan, in accordance with
9	section 6.7, below.
10	1.2.53     Disclosure Statement means the Second Amended Disclosure
11	Statement for the Consolidated Plan of Liquidation Dated July 1, 2004 (as Amended) (and all
12	exhibits and schedules annexed thereto or referred to therein), as approved by the Court.
13	1.2.54     Disputed Class [    ] Claim means a Claim in the designated Class
14	that is not Allowed for purposes of the Cases, and as to which (a) a proof of Claim has been
15	Filed timely or deemed Filed, and (b) an objection to such Claim has been Filed timely and
16	which objection, if timely Filed, has not been withdrawn on or before any date fixed for Filing
17	such objections by the Plan or Order of the Court and (if not withdrawn) has not been overruled
18	or denied by a Final Order. A Claim shall be considered a Disputed Claim to the extent of any
19	Filed objection.
20	1.2.55     Disputed Lien means a lien, security interest, encumbrance or
21	interest in property of any Debtor which secures an obligation, which is not valid, perfected or
22	enforceable against any Debtor for purposes of the Cases, or does not secure payment of any
23	Claim or performance of any obligation of any Debtor to any Creditor, provided that any
24	challenge to such a lien, security interest, encumbrance or interest in property shall be Filed not
25	later than twenty (20) days prior to the Ballot Deadline.
26	1.2.56     Distribution means any transfer of Cash or other property,
27	pursuant to the terms of the Plan, from the Trust to the Holders of Allowed Class 4 Claims.
28	1.2.57     Docket means the docket for the Cases maintained by the Clerk.

9

1	1.2.58     Effective Date means the later of (a) the first Business Day that is:
2	(i) at least ten (10) Days after the Confirmation Date, or (ii) at least one (1) Business Day after
3	the Confirmation Date, if the Court enters an Order making Bankruptcy Rule 7062 inapplicable
4	to the proceedings with respect to the Confirmation Order or otherwise determining that the
5	Effective Date may occur immediately following Confirmation; and (b) the first Business Day on
6	which: (1) no stay of the Confirmation Order is in effect, and (2) all conditions to the Effective
7	Date have been satisfied or, if waivable, waived by the party for whose benefit such condition
8	exists, provided, that in no event shall the Effective Date be later than ninety (90) days after the
9	Confirmation Date; provided, however, that the Court may extend the deadline for the Effective
10	Date to occur, upon motion made before or after the deadline, upon notice and hearing.
11	1.2.59     Face Amount for any Disputed Claim means (a) the full stated
12	amount set forth in any proof of Claim with respect to such Claim, (b) if the amount of such
13	Claim has been estimated in accordance with section 502(c) of the Bankruptcy Code and
14	Bankruptcy Rule 3018 for purposes of distributions, pursuant to a Final Order of the Court, the
15	amount so estimated, unless otherwise expressly set forth in the Plan with respect to a specific
16	Claim or Class of Claims, or (c) such other amount as the Court may establish for purposes of
17	allocating funds for the Reserve for Disputed Claims with respect to such Disputed Claim
18	pursuant to a Final Order. For any proof of Claim which is Filed for an unliquidated amount, the
19	Debtors may ask the Court to either (i) establish an amount for such Claim which will be deemed
20	the “Face Amount” for purposes of the Plan, or (ii) estimate the Claim for purposes of
21	distributions under the Plan.
22	1.2.60     File or Filed means file or filed with the Court in the Cases.
23	1.2.61     Final DIP Order means the Final Order (I) Authorizing Post-
24	Petition Financing On A Secured And Superpriority Basis Pursuant to 11 U.S.C. §§ 105, 362
25	and 364; (ii) Authorizing Use Of Cash Collateral Pursuant to 11 U.S.C. § 363; (iii) Authorizing
26	Termination Of The Pre-Petition Securitization Facility And Reacquisition Of Receivables
27	Subject Thereto Pursuant To 11 U.S.C. § 363; And (iv) Granting Adequate Protection To The
28	Pre-Petition Secured Lessor Pursuant To 11 U.S.C. §§ 361, 362, 363 and 364, entered by the

10

1	Court on October 29, 2002, as amended, supplemented or otherwise modified from time to time.
2	1.2.62     Final Order means an Order, which has not been reversed or
3	stayed, and as to which (a) the time to appeal from the Court or to seek reconsideration by the
4	Court, has expired and no appeal or motion for reconsideration has been timely filed, or (b) any
5	appeal that has been or may be taken, any motion for reconsideration that has been filed, or any
6	petition for certiorari that has been or may be filed, has been resolved by the highest court to
7	which the Order or judgment was heard or appealed or from which certiorari was sought, and
8	(i) the time for any further appeal, motion for reconsideration or petition for certiorari shall have
9	expired without any such action being taken or (ii) any right to appeal, move to reconsider or
10	seek certiorari shall have been waived by the party entitled thereto in writing in form and
11	substance satisfactory to the Trust, provided, however, that the possibility that a motion under
12	Federal Rule of Civil Procedure 59 or 60, or any analogous Bankruptcy Rule, may be filed with
13	respect to such Order, shall not cause such Order not to be a Final Order.
14	1.2.63     GE Capital means General Electric Capital Corporation.
15	1.2.64     GE Capital Claim means all Claims of GE Capital.
16	1.2.65     GE Capital Liabilities has the meaning given to such term in
17	section 12.4.
18	1.2.66     GE Capital Release has the meaning given to such term in section
19	12.4.
20	1.2.67     Holder means the Person that is the Holder of a Claim or Interest
21	for purposes of the Plan.
22	1.2.68     Instrument means any share of stock, security, promissory note or
23	other “instrument,” within the meaning of that term, as defined in section 9102(47) of the
24	California Commercial Code.
25	1.2.69     Inter-Debtor Claim means a Claim held by any Debtor against
26	any other Debtor other than the Claims of CF Bermuda against CFCD, which are classified in
27	Class 9.
28	1.2.70     Interest means the interest of any Holder of any equity security of

11

1	any of the Debtors, whether or not asserted, as defined in section 101(17) of the Bankruptcy
2	Code, including shares of common stock and Other Stock Rights.
3	1.2.71     Leland means Leland James Service Corporation, a Delaware
4	corporation and a Debtor.
5	1.2.72     Lien means any lien, security interest, encumbrance or interest in
6	property of any Debtor which secures an obligation and which is not a Disputed Lien.
7	1.2.73     LLC Entity Claim means any Claim held by any of the LLC
8	Entity against any CF Debtor.
9	1.2.74     LLC Entities means, collectively, CFCD 2002 LLC, CFCD 2002
10	Member LLC, CFCD 2002A LLC and CFCD 2002A Member LLC, each of which is a Delaware
11	limited liability company.
12	1.2.75     Local Bankruptcy Rules means the local rules of the Court, as
13	applicable from time to time in the Cases.
14	1.2.76     Material Actions, for purposes of the Trust Agreement, is referred
15	to in section 7.5.
16	1.2.77     Mexico Affiliates means the Debtors’ non-debtor direct and
17	indirect subsidiaries organized under the laws of the United States or Mexico or the political
18	subdivisions of Mexico, as set forth in Exhibit “B” to this Plan.
19	1.2.78     Non-Contract Claims has the meaning given to such term in
20	section 6.12 of the Plan.
21	1.2.79     Non-Debtor Affiliate means any of the Canada Affiliates and any
22	of the Mexico Affiliates, but does not include CF Bermuda.
23	1.2.80     Non-Debtor Affiliate Claim means any Claim held by any of the
24	Non-Debtor Affiliates.
25	1.2.81     Order means an order or judgment of the Court as entered on the
26	Docket in any of the Cases.
27	1.2.82     Other Stock Rights means, collectively, any warrants, options and
28	any other rights, to purchase or otherwise acquire Interests, and any stock appreciation or similar

12

1	rights to Interests of any of the Debtors, existing prior to the Petition Date. “Other Stock Rights”
2	do not include any rights arising out of the ownership of shares of common stock.
3	1.2.83     Oversight Committee means the post-Effective Date committee
4	of creditors, appointed pursuant to section 6.8 of the Plan, which will supervise the operations of
5	the Trust pursuant to the Trust Agreement.
6	1.2.84     Person means any individual, general partnership, limited
7	partnership, limited liability partnership, limited liability company, corporation, association, joint
8	stock company, joint venture, government or political subdivision or unit, the Committee or
9	other entity.
10	1.2.85     PBGC means the Pension Benefit Guaranty Corporation.
11	1.2.86     Petition Date means September 3, 2002, the date on which the
12	Cases were Filed.
13	1.2.87     Plan means this Consolidated Plan of Liquidation Dated July 1,
14	2004 (as Amended), and all exhibits and schedules referred to herein or in any Appendix, as such
15	may be amended, modified or supplemented from time to time on or prior to the Confirmation
16	Date.
17	1.2.88     Priority Claims means all Priority Non-Tax Claims plus all
18	Priority Tax Claims.
19	1.2.89     Priority Non-Tax Claim means any Claim to the extent such
20	Claim is entitled to priority pursuant to Bankruptcy Code section 507(a), other than an
21	Administrative Claim or a Priority Tax Claim; provided that, in determining the amount of
22	Allowed Priority Non-Tax Claims under section 507(a)(4) of Bankruptcy Code, the Debtors shall
23	prorate such Claims to the extent required by law in the event that the aggregate amount of such
24	Claims exceeds the cap set forth in section 507(a)(4)(B) of the Bankruptcy Code.
25	1.2.90     Priority Tax Claim means an Allowed Claim for an amount
26	entitled to priority under section 507(a)(8) of the Bankruptcy Code.
27	1.2.91     Pro Rata means proportionately so that, with respect to any Class,
28	the ratio of (a) the amount of consideration distributed on account of a particular Allowed Claim

13

1	to (b) the amount of the Allowed Claim, is the same as the ratio of (x) the amount of
2	consideration distributed on account of all Allowed Claims in the Class in which the particular
3	Allowed Claim is included to (y) the aggregate amount of all Allowed Claims of that Class.
4	1.2.92     Professional Claim means all Claims of professionals employed
5	by Order of the Court in the Cases.
6	1.2.93     Record Date has the meaning given to such term in section 9.5.
7	1.2.94     Redwood means Redwood Systems, Inc., a Delaware corporation
8	and a Debtor.
9	1.2.95     Reserve for Disputed Claims means the reserve account created
10	by the Trust pursuant to section 9.8 of the Plan, into which the Trustee or Disbursing Agent shall
11	deposit any amount withheld on account of a payment or Distribution to a Holder of a Disputed
12	Claims.
13	1.2.96     Scheduled means set forth on the Schedules of Asset and
14	Liabilities.
15	1.2.97     Schedules of Assets and Liabilities means, collectively, the
16	Schedules of Assets and Liabilities which were Filed by each of the Debtors with the Court, as
17	the same may have been or may be amended from time to time prior to the Confirmation Date.
18	1.2.98     Secured Claim means any Claim that arose before or after the
19	Petition Date that is secured by a Lien on property in which the Consolidated Estate has an
20	interest, or any Claim that is subject to a right of setoff under section 553 of the Bankruptcy
21	Code, to the extent of the value of the Holder’s interest in the Consolidated Estate’s interest in
22	such property or to the extent of the amount subject to setoff, as applicable, as determined
23	pursuant to section 506(a) of the Bankruptcy Code.
24	1.2.99     Secured Claim Schedule means the schedule of Secured Claims
25	described in section 4.1 of the Plan.
26	1.2.100     Subordinated Claim means (i) any Claim, or portion thereof,
27	which is subordinated to the payment of all other Unsecured Claims (other than Claims which
28	are themselves Subordinated Claims), in accordance with section 510 of the Bankruptcy Code, or

14

1	(ii) any Claim for any fine, penalty, or forfeiture, or for multiple, exemplary or punitive damages,
2	to the extent that such fine, penalty, forfeiture, or damages are not compensation for actual
3	pecuniary loss suffered by the Holder, but not including the Subordinated Pension Fund Claims.
4	1.2.101     Subordinated Pension Fund Claims means that portion of the
5	Claims of a multiemployer pension fund that are or may be asserted against the Debtors for
6	withdrawal liability pursuant to Title IV, Subtitle E, of the Employee Retirement Income
7	Security Act of 1974, as amended, 29 U.S.C., § 1383(a) or § 1385(a), which is Allowed as a
8	general unsecured Claim in the Cases subordinated, pursuant to the Consolidation Order, to all
9	other general unsecured pre-petition Claims, except any Claims subject to contractual
10	subordination and/or subordination pursuant to sections 510(b) or 510(c) of the Bankruptcy
11	Code.
12	1.2.102     Tax Claim means an unsecured Claim of a taxing authority to the
13	extent that the Holder asserts is entitled to priority under section 507(a)(8) of the Bankruptcy
14	Code.
15	1.2.103     Trust means the trust created pursuant to this Plan and the Trust
16	Agreement, as described in Article VII of the Plan. The Trust will receive all of the Trust
17	Property, conclude the liquidation of such assets, and make distributions to the Persons entitled
18	thereto in accordance with the terms of the Plan.
19	1.2.104     Trust Agreement means the Liquidation Trust Agreement which
20	will be in substantially the form Filed as an exhibit to the Disclosure Statement.
21	1.2.105     Trust Beneficial Interests means, collectively, the interests of the
22	Holders of Allowed Class 4 Claims in the Trust and in all Distributions to be made by the
23	Trust on account of Allowed Unsecured Claims against any of the Debtors. The Trust Beneficial
24	Interests (a) shall be noted in the books and records of the Trust, (b) shall not be evidenced by a
25	writing, and (c) may not be transferred, sold, assigned, hypothecated or pledged, except that they
26	may be assigned or transferred by will, intestate succession, or operation of law.
27	1.2.106     Trust Beneficiaries means the holders of Trust Beneficial
28	Interests, as of any point in time.

15

1	1.2.107     Trust Expenses means all costs, expenses and obligations
2	incurred by the Trust or Trustee in administering the Trust or in any manner incidental or related
3	thereto.
4	1.2.108     Trust Fund Claim has the meaning given to such term in
5	section 3.4 hereof.
6	1.2.109     Trust Property means all Assets owned by the Debtors or the
7	Consolidated Estate as of the Effective Date, including, without limitation, the equity securities
8	and other interests of the Debtors in the LLC Entities.
9	1.2.110     Trustee means K. Morgan Enterprises, Inc., an Oregon
10	corporation, the proposed trustee of the Trust, or any successor trustee designated or selected in
11	accordance with the terms of the Plan and the Trust Agreement.
12	1.2.111     Trustee Services Agreement means the “Agreement for Pre-
13	Confirmation Employment Terms (including the Term Sheet for Trustee Services attached
14	thereto as an Exhibit),” which was approved, in part, by the Court’s “Order Authorizing Debtors
15	to Enter into Pre-Confirmation Agreement with Prospective Trustee,” and which was entered on
16	March 12, 2004. A copy of the Trustee Services Agreement is Filed as an exhibit to the
17	Disclosure Statement.
18	1.2.112     Unsecured Claim means any Claim that is not an Administrative
19	Claim, Convenience Claim, LLC Entity Claim, Non-Debtor Affiliate Claim, Priority Non-Tax
20	Claim, Priority Tax Claim, Secured Claim, Subordinated Claim or Subordinated Pension Fund
21	Claim.
22	1.3    Rules of Interpretation.
23	1.3.1     The provisions of the Plan shall control over the contents of the
24	Disclosure Statement. The provisions of the Confirmation Order shall control over the contents
25	of the Plan.
26	1.3.2     For purposes of the Plan: (a) whenever it appears appropriate from
27	the context, each term, whether stated in the singular or the plural, shall include both the singular
28	and the plural, the masculine gender shall include the feminine, and the feminine gender shall

16

1	include the masculine; (b) any reference in the Plan to a contract, Instrument, release or other
2	agreement or document being in a particular form or on particular terms and conditions means
3	that such document shall be substantially in such form or substantially on such terms and
4	conditions, provided, however, that any change to such form, terms or conditions that is material
5	to a party to such document shall not be modified without such party’s consent, unless such
6	document expressly provides otherwise; (c) any reference in the Plan to an existing document,
7	exhibit or schedule Filed or to be Filed means such document, exhibit or schedule, as it may have
8	been or may be amended, modified or supplemented as of the Confirmation Date; (d) unless
9	otherwise specified, all references in the Plan to “sections,” “Articles,” “exhibits” and
10	“Schedules” are references to sections, Articles, exhibits and Schedules of or to the Plan; (e) the
11	words “herein,” “hereof,” “hereto,” “hereunder” and others of similar import refer to the Plan in
12	its entirety rather than to only a particular portion of the Plan; and (f) the rules of construction
13	set forth in Bankruptcy Code section 102 shall apply, except to the extent inconsistent with the
14	provisions of this section 1.3.2; and (h) the word “including” means “including, without
15	limitation.”
16	1.3.3     Whenever a Distribution of Cash or other property is required to be
17	made on a particular date, the Distribution shall be made on such date or as soon as reasonably
18	practicable thereafter.
19	1.3.4     All Appendices and all exhibits to the Plan are incorporated into
20	the Plan and shall be deemed to be included in the Plan, regardless of when they are Filed.
21	1.3.5     Subject to the provisions of any contract, certificate, bylaws,
22	Instrument, release or other agreement or document entered into in connection with the Plan, the
23	rights and obligations arising under the Plan shall be governed by, and construed and enforced in
24	accordance with, federal law, including the Bankruptcy Code and Bankruptcy Rules.
25	1.4    Computation of Time.
26	In computing any period of time prescribed or allowed by the Plan, unless
27	otherwise expressly provided, the provisions of Bankruptcy Rule 9006(a) shall apply.
28

17

1	ARTICLE II
2	CLASSIFICATION OF CLAIMS AND INTERESTS
3	2.1    General.
4	Pursuant to section 1122 of the Bankruptcy Code, all Claims and Interests in the
5	Debtors, except Administrative Claims, Professional Claims, Priority Tax Claims and Trust Fund
6	Claims, are placed in Classes as set forth below. In accordance with section 1123(a)(1) of the
7	Bankruptcy Code, Administrative Claims, Professional Claims, Priority Tax Claims and Trust
8	Fund Claims have not been classified and are treated as set forth in Article III, below.
9	A Claim or Interest is placed in a particular Class for purposes of the Plan only to
10	the extent that the Claim or Interest qualifies within the description of that Class, and shall be
11	classified in another Class or Classes to the extent that any portion of the Claim or Interest
12	qualifies within the description of such other Class or Classes. A Claim or Interest is placed in a
13	particular Class for purposes of receiving distributions pursuant to the Plan only to the extent that
14	such Claim or Interest is an Allowed Claim or Interest in that Class and such Claim or Interest
15	has not been paid, released, or otherwise satisfied prior to the Effective Date. A Disputed Claim,
16	to the extent that it subsequently becomes an Allowed Claim, shall be included in the Class or
17	Classes for which it qualifies based upon the allowance of such Claim.
18	2.2    Unclassified Claims.
19	2.2.1     Administrative Claims.
20	2.2.2     Professional Claims.
21	2.2.3     Priority Tax Claims.
22	2.2.4     Trust Fund Claims.
23	2.3    Unimpaired Classes of Claims and Interests (deemed to have accepted
24	the Plan, and therefore, not entitled to vote on the Plan).
25	2.3.1     Class 2 (Priority Non-Tax Claims).
26	2.3.2     Class 3 (Convenience Claims).
27	2.4    Classes of Secured Claims (may or may not be impaired and entitled
28	to vote to accept or reject the Plan).

18

1	2.4.1     Class 1 (Secured Claims).
2	2.5    Impaired Classes of Claims and Interests (entitled to vote to accept or
3	reject the Plan).
4	2.5.1     Class 4 (Unsecured Claims).
5	2.5.2     Class 5 (Subordinated Pension Fund Claims).
6	2.5.3     Class 6 (Subordinated Claims).
7	2.6    Classes of Claims and Interests Receiving No Distributions (deemed to
8	have rejected the Plan and, therefore, not entitled to vote on the Plan).
9	2.6.1     Class 7 (LLC Entity Claims).
10	2.6.2     Class 8 (Non-Debtor Affiliate Claims).
11	2.6.3     Class 9 (CF Bermuda Claims).
12	2.6.4     Class 10 (Inter-Debtor Claims).
13	2.6.5     Class 11 (Interests in CFC).
14	2.6.6     Class 12 (Interests in CFCD).
15	2.6.7     Class 13 (Interests in CF Airfreight).
16	2.6.8     Class 14 (Interests in CF MovesU).
17	2.6.9     Class 15 (Interests in Leland).
18	2.6.10  Class 16 (Interests in Redwood).
19	ARTICLE III
20	TREATMENT OF UNCLASSIFIED CLAIMS
21	3.1    Administrative Claims.
22	On the Effective Date or as soon thereafter as is practicable, the Trust shall pay to
23	each Holder of an Allowed Administrative Claim, on account of its Allowed Administrative
24	Claim and in full satisfaction, settlement, release and discharge of such Allowed Administrative
25	Claim, (a) Cash equal to the unpaid portion of such Allowed Administrative Claim, or (b) such
26	other treatment which the Debtors and the Holder of such Allowed Administrative Claim agree
27	to in writing prior to Confirmation, provided, however, that Allowed Administrative Claims with
28	respect to liabilities incurred by the Debtors in the ordinary course of business during the Cases

19

1	shall be paid by the Trust in accordance with the terms and conditions of any agreement or
2	course of dealing relating thereto, and provided, further, that Professional Claims shall be paid in
3	accordance with section 3.2.
4	3.2    Professional Claims.
5	Professional Claims shall be Allowed against the Debtors in the amounts
6	approved by the Court. Each Allowed Professional Claim of any Person shall be paid as
7	provided in the Order of employment of such Person or in the Order awarding such Professional
8	Claim, provided, that professionals who are required to file applications for final compensation
9	shall be paid the amounts awarded by the Court based upon such applications as soon as
10	practicable after the Order awarding final compensation becomes a Final Order.
11	3.3    Priority Tax Claims.
12	With respect to each Allowed Priority Tax Claim, at the sole option of the
13	Debtors or the Trustee, as applicable, the Trust shall pay to each Holder of an Allowed Priority
14	Tax Claim on account of such Allowed Priority Tax Claim, in full satisfaction, settlement,
15	release and discharge of such Allowed Priority Tax Claim, (a) in accordance with Bankruptcy
16	Code section 1129(a)(9)(C), equal Cash payments made on the last Business Day of every three-
17	month period following the Effective Date, over a period not exceeding six years after the
18	assessment of the tax on which such Claim is based, totaling the principal amount of such Claim,
19	(b) such other treatment agreed to by the Holder of such Allowed Priority Tax Claim and the
20	Debtors in writing prior to Confirmation, provided such treatment is no less favorable to the
21	Debtors than the treatment set forth in clause (a) hereof, or (c) payment in full on or as soon as
22	practicable after the Effective Date, provided that alternative (a) under this section shall not be
23	used by the Debtors or the Trustee without the prior consent of the Committee or the Oversight
24	Committee, as applicable. Interest on Allowed Priority Tax Claims will accrue, and be payable,
25	as follows: (i) the Debtors shall not be required to pay post-petition interest on any Allowed
26	Priority Tax Claim (or any portion thereof) that is paid on the Effective Date or within thirty (30)
27	days thereafter; (ii) except for any Allowed Priority Tax Claim (or any portion thereof) paid
28	pursuant to subsection (i) above, the Debtors shall pay interest at the Prime Rate (as defined

20

1	below) on any unpaid Priority Tax Claim (or any unpaid portion thereof) to the extent it becomes
2	an Allowed Priority Tax Claim, during the period from the Effective Date through the earlier to
3	occur of payment of such Allowed Priority Tax Claim (or portion thereof) or the first Business
4	Day that is at least one (1) year after the Effective Date (the “First Anniversary Date”) and (iii)
5	for any Allowed Priority Tax Claim (or any portion thereof) that is not paid on or before the First
6	Anniversary Date, the Debtors shall be required to pay, in addition to the accrued interest
7	described in subsection (ii) above, interest (from and after the First Anniversary Date) at a rate
8	equal to the Prime Rate plus one percent (1%) until such Allowed Priority Tax Claim (or portion
9	thereof) is paid in full in accordance with this section 3.3. As used in this section 3.3, the term
10	“Prime Rate” means an adjustable rate of interest equal to the prime rate as announced in The
11	Wall Street Journal (National Edition) on the Effective Date as adjusted thereafter on a monthly
12	basis on the first Business Day of each calendar month after the Effective Date, as announced in
13	The Wall Street Journal (National Edition). The Trust shall have the right to pay any Allowed
14	Priority Tax Claim, or any remaining balance of such Claim, in full, at any time on or after the
15	Effective Date, without premium or penalty of any kind (other than accrued interest calculated in
16	accordance with this section 3.3).
17	3.4    Trust Fund Claims.
18	To the extent the Court enters an Order, which becomes a Final Order, holding
19	that any Cash or property held by the Debtors (a) is being held in trust for any third party and
20	(b) does not constitute property of the Consolidated Estate (“Trust Fund Claims”), such Cash or
21	property will be promptly distributed to such third party or, to the extent that there is any dispute
22	among the beneficiaries as to such amount, interpleaded with a court of competent jurisdiction.
23	Trust Fund Claims are unimpaired under the Plan. The Holders of such Claims are deemed to
24	have accepted the Plan, and are not entitled to vote to accept or reject the Plan.
25	ARTICLE IV
26	TREATMENT OF CLASSIFIED CLAIMS AND INTERESTS
27	4.1    Class 1 (Secured Claims).
28

21

1	All Secured Claims against any of the Debtors shall be classified in Classes 1A,
2	1B, et seq. Class 1 will be divided into subclasses designated by letters of the alphabet
3	(Class 1A, Class 1B, and so on), so that each Holder of an Allowed Secured Claim is in a Class
4	by itself, except to the extent that there are Secured Claims that are substantially similar to each
5	other and may be included within a single Class. The Disclosure Statement shall include a
6	schedule of Secured Claims (the “Secured Claim Schedule”), provided, that the Debtors may
7	amend the Secured Claim Schedule by an amendment or supplement thereto Filed in an
8	Appendix on or before twenty (20) days prior to the Ballot Deadline. Any such amendment or
9	supplement shall be served on the parties entitled to notice thereof. The inclusion of any Claim
10	on such schedule shall be without prejudice to rights of the Debtors, the Trust or any other
11	Person to object to such Claim on any grounds, including without limitation, on the grounds that
12	such Claim is not a Secured Claim or that the Lien securing such Claim is a Disputed Lien.
13	The Secured Claim Schedule shall indicate the treatment proposed for each
14	Holder of a Secured Claim, provided that any amendment or supplement to the Secured Claim
15	Schedule may alter the proposed treatment for the Holder of any Secured Claim other than GE
16	Capital. Each Holder of a Secured Claim specified in any of the following subsections of this
17	section 4.1 shall receive the treatment set forth in the applicable subsection. The other Holders
18	of Allowed Secured Claims may receive, in full satisfaction, settlement, and discharge of such
19	Allowed Secured Claims any of the following treatments: (a) payment of the full Allowed
20	amount of such Secured Claim as soon as reasonably practicable after the later of (i) the
21	Effective Date, and (ii) the date the Secured Claim becomes an Allowed Secured Claim and, if
22	an objection was Filed to such Claim, such Secured Claim shall be deemed an Allowed Secured
23	Claim as of the date the Order allowing such Claim as a Secured Claim becomes a Final Order;
24	(b) retention of the Liens on the Collateral securing such Claim and receipt of deferred cash
25	payments totaling at least the Allowed amount of such Claim, of a value, as of the Effective
26	Date, of at least the value of such Holder’s interest in the Debtors’ interest in the Collateral for
27	such Claim; (c) sale of the Collateral for such Claim, subject to section 363(k) of the Bankruptcy
28	Code, with the Liens securing such Claim to attach to the net proceeds of such sale; (d) the

22

1	realization by such Holder of the indubitable equivalent of such Claim; or (e) such other
2	treatment as the Debtors and the Holder of such Claim have agreed upon in writing.
3	Holders of Allowed Secured Claims will be solicited to vote to accept or reject the
4	Plan in accordance with section 14.1. However, Holders of Allowed Secured Claims that are
5	treated as set forth in clause (a) or clause (e) of this Section are not impaired under the Plan and,
6	will be deemed to have accepted the Plan. Therefore, any vote submitted by any such Holder to
7	accept or reject the Plan will not be considered at the Confirmation Hearing.
8	4.1.1     Class 1A (GE Capital Claims).
9	Class 1A consists of the GE Capital Claims. On the Effective Date
10	or as soon thereafter as is reasonably practicable, the Debtors or the Trust shall, in full settlement
11	of the Debtors’ obligations under the DIP Credit Agreement or arising from the DIP Facility:
12	(a)(i) pay to GE Capital, or its designee, Cash equal to the unpaid portion of any Allowed GE
13	Capital Claims which are liquidated and not contingent as to liability or amount as of the date the
14	Confirmation Hearing commences, in full satisfaction and settlement of such Allowed GE
15	Capital Claims, (ii) deposit Cash with GE Capital, or permit GE Capital to retain Cash Collateral
16	in GE Capital’s possession, in an amount satisfactory to the Debtors and to GE Capital or as
17	determined by the Court following notice and an opportunity for hearing, to be held by GE
18	Capital as Cash Collateral for GE Capital Claims which are unliquidated or contingent as to
19	liability or amount as of the date the Confirmation Hearing commences, and (iii) terminate all
20	Liens of GE Capital on Assets effective as of the Effective Date, except for the Cash Collateral
21	received or retained by GE Capital pursuant to this subsection, or (b) provide such other
22	treatment which the Debtors and GE Capital agree to in writing, and File and serve notice thereof
23	prior to Confirmation. The Debtors shall serve and File, no later than twenty (20) days prior to
24	the Ballot Deadline, a statement of the nature and amount of the GE Capital Claims, and the
25	proposed treatment of the GE Capital Claims, consistent with this section. The Debtors believe
26	that, as of the date hereof, GE Capital does not hold any Claims which are liquidated and not
27	contingent as to liability or amount.
28

23

1	Pursuant to the Final DIP Order, GE Capital was required to repay to the Debtors
2	any “Letter of Credit Improvement Amount” as defined in such Order. The Debtors and GE
3	Capital acknowledge that there is no Letter of Credit Improvement Amount within the meaning
4	of the Final DIP Order and, therefore, GE Capital has no obligation to pay any Letter of Credit
5	Improvement Amount to the Debtors.
6	4.1.2     Class 1B (Claims of BNSF).
7	Class 1B consists of the Claims asserted by BNSF to the extent
8	such Claims are Secured Claims. BNSF has asserted a Secured Claim or a Trust Fund Claim,
9	against the Debtors in the amount of $258,282.00 and an Administrative Claim in the amount of
10	$6,298,257.00, for a total of $6,556,538.00, plus interest, on account of revenue collected by
11	Debtor CFCD for cargo or freight shipped by BNSF for the account of CFCD before the Petition
12	Date. BNSF asserts a Secured Claim or Trust Fund Claim to the extent BNSF can trace
13	collections by CFCD on account of CFCD invoices to CFCD’s customers based upon rail
14	services rendered by BNSF to ship such customers’ goods. BNSF may assert an Administrative
15	Claim to the extent funds were collected by the Debtors after the Petition Date. The Claims of
16	BNSF are currently the subject of an adversary proceeding pending before the Court, Adversary
17	No. RS 03-1241 MG.
18	To the extent BNSF’s Claims are Allowed as a Secured Claim,
19	BNSF shall receive, in full satisfaction, settlement, and discharge of such Allowed Secured
20	Claim, payment by the Debtors or the Trust of the full Allowed amount of such Secured Claim as
21	soon as reasonably practicable after BNSF’s Claims are Allowed as a Secured Claim by a Final
22	Order.
23	To the extent BNSF’s Claims are Allowed as an Administrative
24	Claims, BNSF shall be treated in accordance with section 3.1 as soon as reasonably practicable
25	after BNSF’s Claims are Allowed as an Administrative Claim by a Final Order.
26	To the extent BNSF’s Claims are Allowed as Trust Fund Claims,
27	BNSF shall be treated in accordance with section 3.4 as soon as reasonably practicable as
28	BNSF’s Claims are Allowed as a Trust Fund Claim by a Final Order.

24

1	Any portion of BNSF’s Claims which are Allowed as Unsecured
2	Claims shall be treated as Allowed Class 4 Claims.
3	4.1.3     Class 1C (State of Wisconsin).
4	Class 1C consists of the Claims asserted by the State of Wisconsin
5	to the extent such Claims are Secured Claims. To the extent the State of Wisconsin’s Claims are
6	Allowed as a Secured Claim, the State of Wisconsin shall receive, in full satisfaction, settlement,
7	and discharge of such Allowed Secured Claim, one of the treatments described in the second
8	paragraph of section 4.1 of the Plan. The Debtors will File and serve notice of the treatment
9	proposed for any Allowed Secured Claim the State of Wisconsin may have at least twenty (20)
10	days prior to the Ballot Deadline. In the event the Debtors elect option (a), payment of the full
11	Allowed amount of the Secured Claim of the State of Wisconsin, then the State of Wisconsin
12	shall be deemed unimpaired with respect to such Secured Claim, and any Ballot submitted by the
13	State of Wisconsin shall be disregarded, and Class 1C shall be deemed to have accepted the Plan.
14	Any portion of the State of Wisconsin’s Claims which are Allowed
15	as Unsecured Claims shall be treated as Allowed Class 4 Claims.
16	4.1.4     Class 1D (Real Property Secured Tax Claims).
17	Class 1D consists of the Claims asserted by state and local taxing
18	authorities for taxes, to the extent such Claims are secured by Liens on real property owned by
19	any of the Debtors. To the extent any of such Claims is Allowed as a Secured Claim, pursuant to
20	the Plan, such Secured Claim shall continue to be secured by the Collateral subject to the Lien
21	securing such Claim and the taxing authority holding such Claim shall receive, in full
22	satisfaction, settlement, and discharge of such Allowed Secured Claim, Cash equal to the full
23	Allowed amount of such Secured Claim at the closing of the sale by the Debtor or the Trust of
24	the real property Collateral for such Secured Claim, or at any time prior thereto in the discretion
25	of the Trustee. Therefore, the taxing authorities are unimpaired with respect to such Secured
26	Claims, and any Ballot submitted by such taxing authorities shall be disregarded, and Class 1D
27	shall be deemed to have accepted the Plan.
28

25

1	Any portions of the Claims of any taxing authority which are not
2	Allowed as Secured Claims shall be treated in whatever Class other than Class 1 in which such
3	Claims belong.
4	4.2    Class 2 (Priority Non-Tax Claims).
5	Class 2 consists of all Priority Non-Tax Claims against any of the Debtors. As
6	soon as reasonably practicable after the later of (i) the Effective Date and (ii) the date a Priority
7	Non-Tax Claim becomes an Allowed Claim, the Trust shall pay the Holder of such Allowed
8	Priority Non-Tax Claim, in full satisfaction, settlement, release and discharge of such Allowed
9	Priority Non-Tax Claim (a) Cash equal to the amount of such Allowed Priority Non-Tax Claim,
10	or (b) such other treatment which the Debtors and the Holder of such Allowed Priority Non-Tax
11	Claim agree to in writing, and File and serve notice thereof prior to Confirmation. Claims in
12	Class 2 are not impaired under the Plan and therefore the Holders of such Claims are not entitled
13	to vote for or against the Plan.
14	4.3    Class 3 (Convenience Claims).
15	Class 3 consists of all general unsecured pre-petition Claims that are Allowed in
16	an amount equal to or less than $100.00, and all Unsecured Claims that are Allowed in an
17	amount greater than $100 but which the Holders elect to reduce to $100 by an election made in
18	accordance with the terms of this section (collectively, the “Convenience Claims”). As soon as
19	reasonably practicable after both of the following occur: (a) the satisfaction in full, or creation of
20	reserves which are determined by the Trustee to be adequate for satisfaction in full in accordance
21	with the Plan, of all Allowed GE Capital Claims, Allowed Administrative Claims, Allowed
22	Professional Claims and Allowed Priority Claims as provided in Article III of the Plan, and all
23	Trust Expenses which may be incurred, and (b) a Convenience Claim becomes an Allowed
24	Claim, the Trust shall pay to the Holder of such Convenience Claim Cash equal to one hundred
25	percent (100%) of the amount of such Allowed Convenience Claim, in full satisfaction,
26	settlement, release and discharge of such Allowed Convenience Claim. Any Holder of an
27	Unsecured Claim which is Allowed for an amount in excess of $100 may elect to reduce his or
28	her Claim to $100 by checking the appropriate box on the Ballot to make such election. Failure

26

1	by the Holder to elect timely to be treated as a Convenience Claim will cause such Claim to be
2	treated as provided for Class 4 Claims. The Holders of Class 3 Claims are not impaired by the
3	Plan and are therefore are not entitled to vote for or against the Plan.
4	4.4    Class 4 (Unsecured Claims).
5	Class 4 consists of all Allowed Unsecured Claims. As soon as practicable after
6	the Effective Date, each Holder of an Allowed Class 4 Claim shall receive, in satisfaction of its
7	Allowed Class 4 Claim, in one or more Distributions, its Pro Rata share of the Cash held in the
8	Trust from time to time, after payment of, or creation of reserves determined by the Trustee and
9	the Oversight Committee, in accordance with the Trust Agreement, to be adequate to pay, all
10	other obligations which are to be paid by the Trust, including, without limitation, payments to
11	Holders of Claims with priority to Allowed Class 4 Claims and Trust Expenses, provided that no
12	Distribution shall be made with respect to a Disputed Class 4 Claim which, if Allowed, would be
13	an Allowed Class 4 Claim, until such Claim becomes an Allowed Claim, and no Distribution
14	shall be made with respect to an Allowed Class 4 Claim until either (i) the deadline to object to
15	such Allowed Claim expires, or (ii) the Debtors and the Committee or the Oversight Committee,
16	as applicable, File and serve a notice of non-objection to such Claim, as provided in clause (iv)
17	of the definition of the term “Allowed,” whether or not the deadline to object to such Claim has
18	otherwise expired. Distributions shall be made to the Holders of such Disputed Claims and
19	Allowed Claims for which the deadline to object has not expired as soon as practicable after such
20	Claim becomes an Allowed Class 4 Claim or the deadline to object to such Claim expires or a
21	notice of non-objection is given, provided, however, that such Claim shall be extinguished if
22	such Unsecured Claim is Disallowed. Distributions by the Trust on account of Industrial
23	Development Refunding Revenue Bonds issued by the Town of Freemont, Indiana, the City of
24	Blaine, Minnesota, and the City of Peru, Illinois will be made in accordance with the Indentures
25	of Trust (and related documents) governing such bonds.
26	The Holders of Class 4 Claims are impaired by the Plan and are therefore entitled
27	to vote for or against the Plan.
28

27

1	4.5    Class 5 (Subordinated Pension Fund Claims).
2	Class 5 consists of Subordinated Pension Fund Claims. Holders of Subordinated
3	Pension Fund Claims will not receive any distribution of Cash or other property under the Plan
4	on account of their Subordinated Pension Fund Claims unless and until all Holders of Allowed
5	Class 4 Claims have been paid the full amounts of their Allowed Class 4 Claims, and funds are
6	held in the Reserve for Disputed Claims in the Face Amount of all remaining Disputed Class 4
7	Claims. In the event such condition to distributions to Class 5 is met, as soon as practicable after
8	the condition is met, each Holder of an Allowed Class 5 Claim shall receive, in satisfaction of its
9	Allowed Class 5 Claim, in one or more distributions, its Pro Rata share of the Cash held in the
10	Trust from time to time, after payment of, or creation of reserves determined by the Trustee and
11	the Oversight Committee, in accordance with the Trust Agreement, to be adequate to pay, all
12	other obligations which are to be paid by the Trust, including, without limitation, payments to
13	Holders of Claims with priority to Allowed Class 5 Claims and outstanding and estimated future
14	Trust Expenses, provided that no distribution shall be made with respect to a Disputed Class 5
15	Claim which, if Allowed, would be an Allowed Class 5 Claim, until such Claim becomes an
16	Allowed Claim. The Holders of Class 5 Claims are impaired and the Holders of such Claims are
17	therefore entitled to vote to accept or reject the Plan.
18	4.6    Class 6 (Subordinated Claims).
19	Class 6 consists of Subordinated Claims. Holders of Subordinated Claims will
20	not receive any distribution of Cash or other property under the Plan on account of their
21	Subordinated Claims unless and until all Holders of Allowed Class 4 Claims and Allowed
22	Class 5 Claims have been paid the full amounts of their Allowed Class 4 Claims and Allowed
23	Class 5 Claims, and funds are held in the Reserve for Disputed Claims in the Face Amount of all
24	remaining Disputed Class 4 Claims and Disputed Class 5 Claims. In the event such condition to
25	distributions to Class 6 is met, as soon as practicable after the condition is met, each Holder of an
26	Allowed Class 6 Claim shall receive, in satisfaction of its Allowed Class 6 Claim, in one or more
27	distributions, its Pro Rata share of the Cash held in the Trust from time to time, after payment of,
28	or creation of reserves determined by the Trustee and the Oversight Committee, in accordance

28

1	with the Trust Agreement, to be adequate to pay, all other obligations which are to be paid by the
2	Trust, including, without limitation, payments to Holders of Claims with priority to Allowed
3	Class 6 Claims and outstanding and estimated future Trust Expenses, provided that no
4	distribution shall be made with respect to a Disputed Class 6 Claim which, if Allowed, would be
5	an Allowed Class 6 Claim, until such Claim becomes an Allowed Claim. The Holders of Class 6
6	Claims are impaired and the Holders of such Claims are therefore entitled to vote to accept or
7	reject the Plan.
8	4.7    Class 7 (LLC Entity Claims).
9	Class 7 consists of LLC Entity Claims. The LLC Entities, as the Holders of LLC
10	Entity Claims, will not receive any distribution of Cash or other property under the Plan on
11	account of the LLC Entity Claims. As a result, Claims in Class 7 are impaired and the Holders
12	of such Claims are deemed to have rejected the Plan. The Debtors reserve the right, pursuant to
13	the Plan, to contribute the LLC Entity Claims to the capital of any other Debtor, to dividend any
14	such Claim upstream to a Debtor which is the direct or indirect parent corporation of the LLC
15	Entity which holds such Claim, or to deem any such Claims to be canceled.
16	4.8    Class 8 (Non-Debtor Affiliate Claims).
17	Class 8 consists of the Non-Debtor Affiliate Claims. The Non-Debtor Affiliates,
18	as the Holders of the Non-Debtor Affiliate Claims, will not receive any distribution of Cash or
19	other property under the Plan on account of the Non-Debtor Affiliate Claims. As a result,
20	Claims in Class 8 are impaired and the Holders of such Claims are deemed to have rejected the
21	Plan. The Debtors reserve the right, pursuant to the Plan, to contribute the Non-Debtor Affiliate
22	Claims to the capital of any other Debtor, to dividend any such Claim upstream to a Debtor
23	which is the direct or indirect parent corporation of the Debtor which holds such Claim, or to
24	deem any such Claims to be canceled. No proofs of Claim were Filed in the Cases on behalf of
25	any of the Non-Debtor Affiliates; however the Debtors scheduled certain of the Non-Debtor
26	Affiliates as holding Unsecured Claims.
27	4.9    Class 9 (CF Bermuda Claims).
28

29

1	Class 9 consists of the Claims held by CF Bermuda against CFCD under
2	approximately $79.1 million of debentures issued by CFCD to CF Bermuda. If the Commutation
3	Agreement is entered into by the parties thereto, CF Bermuda will agree to release all of its
4	Claims against CFCD, in exchange for commutation of the workers’ compensation insurance
5	liability assumed by CF Bermuda. In that case, CF Bermuda will not receive any distribution of
6	Cash or other property under the Plan on account of its Claims. Because CF Bermuda will have
7	consented to this treatment in the Commutation Agreement, it would be deemed to be
8	unimpaired and to have accepted the Plan.
9	If the Commutation Agreement is not entered into, the Debtors will assert a setoff
10	of the workers’ compensation insurance liability assumed by CF Bermuda against the Claims
11	held by CF Bermuda under the debentures. Since these obligations are in equal and offsetting
12	amounts, CF Bermuda would have no Allowed Claims against the Debtors, and would not be
13	entitled to any distributions of Cash or property pursuant to the Plan.
14	Therefore, CF Bermuda shall either be deemed to be unimpaired under the Plan or
15	is conclusively deemed to have rejected the Plan. In either case, CF Bermuda shall not receive
16	any distribution of Cash or other property under the Plan and is not entitled to vote to accept or
17	reject the Plan.
18	4.10    Class 10 (Inter-Debtor Claims).
19	Class 10 consists of Inter-Debtor Claims. The Debtors, as the Holders of the
20	Inter-Debtor Entity Claims, will not receive any distribution of Cash or other property under the
21	Plan on account of the Inter-Debtor Claims. As a result, Claims in Class 10 are impaired and the
22	Holders of such Claims are deemed to have rejected the Plan. The Debtors reserve the right,
23	pursuant to the Plan, to contribute the Inter-Debtor Claims to the capital of any other Debtor, to
24	dividend any such Claim upstream to a Debtor which is the direct or indirect parent corporation
25	of the Debtor which holds such Claim, or to deem any such Claims to be canceled.
26	4.11    Class 11 (Interests in CFC).
27	Class 11 consists of Interests in CFC, including Other Stock Rights in CFC.
28	Holders of Interests in CFC will not receive any distribution of Cash or other property under the

30

1	Plan on account of their Interests and, on the Effective Date, the Interests will be deemed
2	cancelled. As a result, Interests in Class 11 are impaired and the Holders of such Interests are
3	deemed to have rejected the Plan.
4	4.12    Class 12 (Interests in CFCD).
5	Class 12 consists of Interests in CFCD, including Other Stock Rights in CFCD.
6	Holders of Interests in CFCD will not receive any distribution of Cash or other property under
7	the Plan on account of their Interests and, on the Effective Date, the Interests will be deemed
8	cancelled. As a result, Interests in Class 12 are impaired and the Holders of such Interests are
9	deemed to have rejected the Plan.
10	4.13    Class 13 (Interests in CF Airfreight).
11	Class 13 consists of Interests in CF Airfreight, including Other Stock Rights in
12	CF Airfreight. Holders of Interests in CF Airfreight will not receive any distribution of Cash or
13	other property under the Plan on account of their Interests and, on the Effective Date, the
14	Interests will be deemed cancelled. As a result, Interests in Class 13 are impaired and the
15	Holders of such Interests are deemed to have rejected the Plan.
16	4.14    Class 14 (Interests in CF MovesU).
17	Class 14 consists of Interests in CF MovesU, including Other Stock Rights in
18	CF MovesU. Holders of Interests in CF MovesU will not receive any distribution of Cash or
19	other property under the Plan on account of their Interests and, on the Effective Date, the
20	Interests will be deemed cancelled. As a result, Interests in Class 14 are impaired and the
21	Holders of such Interests are deemed to have rejected the Plan.
22	4.15    Class 15 (Interests in Leland).
23	Class 15 consists of Interests in Leland, including Other Stock Rights in Leland.
24	Holders of Interests in Leland will not receive any distribution of Cash or other property under
25	the Plan on account of their Interests and, on the Effective Date, the Interests will be deemed
26	cancelled. As a result, Interests in Class 15 are impaired and the Holders of such Interests are
27	deemed to have rejected the Plan.
28	4.16    Class 16 (Interests in Redwood).

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1	Class 16 consists of Interests in Redwood, including Other Stock Rights in
2	Redwood. Holders of Interests in Redwood will not receive any distribution of Cash or other
3	property under the Plan on account of their Interests and, on the Effective Date, the Interests will
4	be deemed cancelled. As a result, Interests in Class 16 are impaired and the Holders of such
5	Interests are deemed to have rejected the Plan.
6	4.17    Duplicate Claims against Multiple Debtors.
7	Pursuant to the Consolidation Order, all of the Debtors’ chapter 11 estates have
8	been substantively consolidated into the Consolidated Estate. Thus, a Creditor which holds
9	Claims against multiple Debtors, which Claims are based upon or relate to the same or similar
10	indebtedness or obligations, whether by reason of guarantee, indemnity agreement, joint and
11	several obligation or otherwise, shall be deemed to have only one Claim against the Consolidated
12	Estate in an amount equal to the largest of all such similar Allowed Claims for purposes of
13	Distributions under the Plan. For purposes of voting on the Plan, any Creditor holding such
14	similar Claims against multiple Debtors may only vote the largest of all such similar Allowed
15	Claims.
16	4.18    Substantive Consolidation.
17	Notwithstanding the Consolidation Stipulation and the Consolidation Order, any
18	Avoidance Action and any other Causes of Action held by the Debtors arising under section 541
19	through 550 of the Bankruptcy Code or state laws of similar effect, against any third party other
20	than the other Debtors, the LLC Entities and the Canada Affiliates, are preserved and remain
21	unaffected by the substantive consolidation of the Debtors’ chapter 11 estates, except to the
22	extent any of such actions are expressly waived or settled pursuant to the Consolidation
23	Stipulation or the Consolidation Order.
24	ARTICLE V
25	TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES
26	5.1    Assumption; Assumption and Assignment.
27	As of the Effective Date, the Debtors shall assume or assume and assign, as
28	applicable, pursuant to Bankruptcy Code section 365, each of the executory contracts and

32

1	unexpired leases of the Debtors that are identified in the Disclosure Statement, or any exhibit
2	thereto, as executory contracts or leases which the Debtors are going to assume and assign, and
3	that have not expired under their own terms prior to the Effective Date. The Debtors reserve the
4	right to amend such exhibit not later than ten (10) days prior to the Ballot Deadline, either to:
5	(a) delete any executory contract or lease listed therein and provide for its rejection pursuant to
6	section 5.4 hereof; or (b) add any executory contract or lease to such exhibit, to provide for its
7	assumption or assumption and assignment, as applicable, pursuant to this section. The Debtors
8	shall provide notice of any such amendment of such exhibit to the non-Debtor parties to the
9	executory contract or lease affected thereby and to the Committee, not later than ten (10) days
10	prior to the Ballot Deadline. The Disclosure Statement or such exhibit shall specify any
11	monetary or other defaults under any executory contract and unexpired lease to be assumed or
12	assumed and assigned. The Confirmation Order shall constitute an Order of the Court pursuant
13	to Bankruptcy Code section 365 approving all such assumptions or assumptions and assignments
14	described in this section 5.1, as of the Effective Date.
15	5.2    Cure Payments; Assurance of Performance.
16	Any monetary defaults under any executory contract and unexpired lease to be
17	assumed pursuant to the Plan shall be satisfied, pursuant to Bankruptcy Code section 365(b)(1),
18	in one of the following ways: (a) by payment of the amount in default in Cash, in full on or as
19	soon as practicable after the Effective Date; or (b) by payment of the amount in default on such
20	other terms as may be agreed to in writing by the Debtors and the non-Debtor parties to such
21	executory contract or lease. At the Confirmation Hearing, the Court shall consider the amounts
22	of monetary defaults under any such executory contract or lease. In the event of a dispute
23	regarding (i) the amount or timing of any cure payments, (ii) the ability of the Debtors, the Trust,
24	or an assignee thereof to provide adequate assurance of future performance under the contract or
25	lease to be assumed or assumed and assigned, as applicable, or (iii) any other matter pertaining to
26	assumption or assumption and assignment of the contract or lease to be assumed, the Trust shall
27	pay all required cure amounts promptly following the entry of a Final Order resolving all such
28	disputes.

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1	5.3    Objections to Assumption of Executory Contracts and Unexpired
2	Leases.
3	To the extent that any non-Debtor party to an executory contract or unexpired
4	lease identified for assumption, or assumption and assignment, asserts defaults or damages
5	pursuant to Bankruptcy Code section 365(b)(1) other than those specified by the Debtors
6	pursuant to section 5.1, or has any objection with respect to any proposed assumption, cure or
7	assignment on the terms and conditions provided herein, including any objection to adequate
8	assurance of future performance, all such defaults, damages and objections must be Filed and
9	served: (a) as to any contracts or leases identified in the Disclosure Statement or any exhibit
10	thereto that is mailed to any party to any such contract or lease along with all other solicitation
11	materials accompanying the Plan, within the same deadline and in the same manner established
12	for Filing and service of objections to Confirmation; and (b) as to any contracts or leases
13	identified in any subsequent amendments to the Disclosure Statement or any exhibit thereto that
14	is mailed to any party to any such contract or lease no later than ten (10) days prior to the Ballot
15	Deadline, in such a manner as to be received by the Court and Debtors, and the Committee, no
16	later than the Ballot Deadline.
17	Failure to assert such defaults, damages or objections in the manner described
18	above shall constitute consent to the proposed assumption, cure or assignment on the terms and
19	conditions provided herein, including an acknowledgement that the proposed assumption and/or
20	assignment provides adequate assurance of future performance and that the amount identified for
21	“cure” in the Disclosure Statement or any exhibit thereto is the amount necessary to cover any
22	and all outstanding defaults under the executory contract or unexpired lease to be assumed, as
23	well as an acknowledgement and agreement that no other defaults exist under such contract or
24	lease.
25	If any assumption or assumption and assignment of an executory contract or
26	unexpired lease is not approved by the Court on the terms proposed by the Debtors for any
27	reason, then the Debtors shall be entitled, in their sole discretion, upon written notice Filed with
28	the Court and served on the applicable non-Debtor party to such executory contract or unexpired

34

1	lease, to deem such executory contract or unexpired lease to have been rejected pursuant to the
2	provisions of section 5.4 below. Such notice of rejection of such executory contract or lease
3	shall be served by the Debtors within ten (10) days following the date the Order denying such
4	assumption or assumption and assignment on the terms proposed by the Debtors becomes a Final
5	Order, and Filed promptly thereafter.
6	5.4    Rejection of Executory Contracts and Unexpired Leases.
7	Except for those executory contracts and unexpired leases (a) that are assumed
8	pursuant to the Plan, (b) that are the subject of previous Orders of the Court providing for their
9	assumption or rejection pursuant to Bankruptcy Code section 365, irrespective of whether such
10	assumption or rejection has yet to occur on the Effective Date, or (c) that are the subject of a
11	motion pending before the Court with respect to the assumption or assumption and assignment of
12	such executory contracts and unexpired leases as of the Confirmation Date, all executory
13	contracts and unexpired leases of the Debtors shall be rejected pursuant to section 365 of the
14	Bankruptcy Code as of the Effective Date. For the purposes of this section 5.4, as of the
15	Effective Date, any and all customer agreements that have not been previously terminated, that
16	have not been previously assigned to a third party by order of the Court, or that are not the
17	subject of a pending motion before the Court with respect to the same, shall be terminated and, to
18	the extent applicable, shall be deemed rejected pursuant to Bankruptcy Code section 365.
19	5.5    Approval of Rejection; Rejection Damages Claims Bar Date.
20	The Confirmation Order shall constitute an Order of the Court approving all
21	rejections under section 5.4 above of executory contracts and unexpired leases pursuant to
22	Bankruptcy Code section 365 as of the Effective Date. Any Claim for damages arising from any
23	such rejection must be Filed within thirty (30) days after the later of mailing of notice of the
24	entry of the Confirmation Order or mailing of the notice of the Debtors’ rejection of such
25	contract or lease, or such Claim shall be forever barred, shall not be enforceable against the
26	Debtors, the Consolidated Estate, the Trust, the Trustee, or any of their respective properties, and
27	shall not receive any distribution under the Plan or otherwise.
28

35

1	ARTICLE VI
2	MEANS FOR EXECUTION AND IMPLEMENTATION OF THE PLAN
3	6.1    Plan Implementation.
4	The Plan is based on the liquidation of the Trust Property. The Trust Property
5	shall be transferred to the Trust created pursuant to the Trust Agreement, and thereafter
6	liquidated. The net proceeds of the Trust Property shall be disbursed to Holders of Allowed
7	Claims pursuant to the Plan.
8	6.2    Sources of Payment.
9	All payments to Holders of Allowed Claims shall be paid by the Trust from Cash
10	on hand. Such payments shall be made as and when provided in the Plan.
11	6.3    Vesting of Assets.
12	On the Effective Date, all of the Trust Property, including Causes of Action, shall
13	vest in the Trust, except as otherwise expressly provided in the Plan. The Trust Property shall
14	vest in the Trust, pursuant to Bankruptcy Code sections 541(a) and 1141(b), free and clear of all
15	Liens or Disputed Liens, except to the extent that, pursuant to the Plan or the Confirmation
16	Order, any Holder or Holders of Allowed Secured Claims are authorized to retain a Lien on any
17	of the Trust Property to secure such Claims.
18	6.4    Cancellation of Existing Instruments and Other Documents.
19	On the Effective Date, all promissory notes, share certificates, uncertified
20	interests, bonds and other Instruments evidencing any Claim against, Interest in or Other Stock
21	Right relating to, the Debtors shall be deemed canceled without further act or action under any
22	applicable agreement, law, regulation, order, or rule, except to the extent the Plan expressly
23	provides otherwise, and the obligations of the Debtors thereunder shall be extinguished, provided
24	that this section shall not apply to such documents and Instruments which are held by GE
25	Capital.
26
27
28

36

1	6.5    Objections to Claims.
2	6.5.1     Objections to Claims in General.
3	Except for Professional Claims and except as otherwise ordered by the Court after
4	notice and a hearing, from and after the Effective Date, the Trustee shall have the authority to
5	File, settle, compromise, withdraw, and litigate objections to Claims, including objections Filed
6	by the Debtors prior to the Effective Date: (a) pursuant to applicable procedures established by
7	the Bankruptcy Code, the Bankruptcy Rules and the Plan; and (b) subject to the provisions of the
8	Trust Agreement which may impose requirements or limitations upon the authority granted to
9	the Trustee herein, including requiring the consent of the Oversight Committee to specified
10	actions. Objections to Claims, including Administrative Claims, shall be Filed and served on the
11	Holder of such Claim not later than the later of (i) one hundred eighty (180) days after the
12	Effective Date for Claims which are not Administrative Claims, (ii) sixty (60) days after a proof
13	of Claim or request for payment of such Claim is Filed and served on the Debtors (if pre-
14	Effective Date), the Trustee (post-Effective Date) and the Oversight Committee (post-Effective
15	Date) (provided nothing in the Plan impairs or invalidates any bar date for Claims previously set
16	by Orders of the Court or the bar date pursuant to section 6.5.2), and (iii) ninety (90) days after
17	the bar date set for Administrative Claims in section 6.5.2 of the Plan or otherwise set by the
18	Court for the Filing of Administrative Claims, provided that any of such periods may be
19	extended by the Court on the application of the Trustee or the Oversight Committee, which
20	application shall be made on notice and hearing to any Holder of any affected Claim before or
21	after the deadline for such objections.
22	6.5.2     Professional Claims and Administrative Claims, Other than
23	Tax Claims.
24	Requests for payment or proofs of Administrative Claims (other than with respect
25	to (i) Administrative Claims for which the Court previously has established a Bar Date, and
26	(ii) Tax Claims addressed in section 6.5.3, below), Professional Claims and Claims of other
27	Persons requesting compensation or reimbursement of expenses pursuant to Bankruptcy Code
28	sections 327, 328, 330, 331, 503(b) or 1103 for services rendered on or before the Effective Date

37

1	(including any compensation requested by any Person for making a substantial contribution in
2	the Cases), must be Filed and served on the Trust no later than the day that is sixty (60) days
3	following the Effective Date or, if such day is not a Business Day, the first Business Day after
4	such day. Objections to any such Administrative Claims must be Filed and served on the Holder
5	by the deadline established in section 6.5.1.
6	Holders of Professional Claims and Administrative Claims required to File a
7	proof of Claim or request for payment by the deadline in the preceding subsection and that do
8	not File such requests on or before the deadline in accordance with this section shall be forever
9	barred from asserting such Claims against the any of the Debtors, the Consolidated Estate, the
10	Trustee, or any of their respective properties.
11	6.5.3     Tax Claims.
12	All requests for payment by a governmental unit for or on account of a Tax
13	Claim, and for interest and/or penalties or other amounts related to such Tax Claim, for any tax
14	year or period, all or any portion of which occurs or falls within the period from and including
15	the Petition Date through and including the Effective Date, and for which no Bar Date has
16	otherwise been previously established, must be Filed on or before the later of: (a) sixty (60) days
17	following the Effective Date; or (b) ninety (90) days following the filing with the applicable
18	governmental unit of the tax return for the tax year or period that is the subject of or relates to
19	such Tax Claim. Any Holder of a Tax Claim that is required to File a request for payment of
20	such Tax Claim and other amounts due related to such Tax Claim and which does not File such a
21	Claim by the applicable Bar Date shall be forever barred from asserting any such Claim against
22	any of the Debtors, the Consolidated Estate, and the Trust, and their respective assets, whether
23	any such Claim is deemed to arise prior to, on, or subsequent to the Effective Date, and such
24	Holder shall receive no distribution under the Plan or otherwise on account of such Tax Claim.
25	6.6    Creation of the Trust.
26	On the Effective Date, the Trust will be created pursuant to the Plan and the Trust
27	Agreement. The Effective Date of the Plan shall also be the effective date of the Trust.
28

38

1	6.7    Appointment of Disbursing Agent.
2	As of the Effective Date, or at any time thereafter that the Trustee so desires,
3	subject to the approval of the Oversight Committee, the Debtors or the Trustee may appoint a
4	Disbursing Agent for the purpose of making Distributions under the Plan to Creditors and
5	holders of Beneficial Trust Interests. The Disbursing Agent shall be a person or entity
6	satisfactory to the Oversight Committee and shall serve without bond. The Disbursing Agent
7	shall be entitled to reasonable compensation and reimbursement of all reasonable and actual
8	costs and expenses incurred in performing its duties under the Plan.
9	In the event the Debtors propose to employ a Disbursing Agent effective as of the
10	Effective Date, (a) the Debtors shall serve and File notice of the identity of the proposed
11	Disbursing Agent, the compensation proposed to be paid for such services, and all other material
12	terms of the employment of the Disbursing Agent, not less than ten (10) days prior to the Ballot
13	Deadline, and (b) the initial Disbursing Agent and the terms of employment shall be approved by
14	the Court pursuant to the Confirmation Order. In the event the Debtors do not propose to employ
15	the initial Disbursing Agent until after the Effective Date, the identity, compensation and terms
16	of employment of the Disbursing Agent need not be disclosed prior to the Confirmation Hearing,
17	but shall be subject to approval by the Oversight Committee pursuant to the Trust Agreement. If
18	a Disbursing Agent is employed, the Disbursing Agent shall fulfill the obligations of the Trust
19	under the Plan with respect to Distributions of Cash to holders of Trust Beneficial Interests and
20	may hold the Reserve for Disputed Claims.
21	The Trust shall pay to the Disbursing Agent, from time to time, funds to pay the
22	compensation of the Disbursing Agent and the expenses incurred by the Disbursing Agent, in
23	addition to funds provided to the Disbursing Agent to make Distributions. If such funds are not
24	provided to the Disbursing Agent, the Disbursing Agent may retain, from funds paid to it by the
25	Trust, an amount sufficient to satisfy the expenses of making any Distribution and the
26	compensation and expenses payable to the Disbursing Agent. In the event of the resignation of
27	the initial or any subsequent Disbursing Agent at any time after Confirmation, a replacement
28

39

1	may be appointed by the Trust in accordance with the terms of the Trust Agreement, without
2	need for further Court approval.
3	6.8    Creation of the Oversight Committee.
4	On the Effective Date, the Oversight Committee shall be formed, comprised of
5	five (5) members of the Committee, or such other Persons as are proposed for membership by
6	the Committee. Not less than twenty (20) days prior to the Ballot Deadline, the Committee will
7	File and serve a notice of the identity of the proposed members of the Oversight Committee, if
8	the identity of the proposed members was not included in the Disclosure Statement or has
9	changed since the Filing of the Disclosure Statement, and the Court shall consider the
10	appointment of these members at the Confirmation Hearing. The Oversight Committee shall be
11	governed by Article VIII of the Plan and the terms of the Trust Agreement.
12	6.9    Termination of Committee.
13	On the Effective Date, the Committee shall be dissolved and the members of the
14	Committee shall be released and discharged from all further rights and duties arising from or
15	related to the Cases, other than (a) the right to enforce all terms and provisions of the Plan which
16	benefit them with respect to the pre-Effective Date services, and (b) the right to be paid any
17	unpaid expenses incurred by them in connection with the performance of their duties as members
18	of the Committee. The professionals retained by the Committee shall be entitled to
19	compensation and reimbursement of expenses for services (x) rendered through the Effective
20	Date, and (y) in connection with applications for final allowance of compensation and
21	reimbursement of expenses pending as of, or Filed on or after, the Effective Date.
22	6.10    Cessation of the Business Operations of the Debtors.
23	From and after the Effective Date, the Debtors (i) shall be deemed, for all
24	purposes, to have terminated and withdrawn their business operations from any state in which
25	the Debtors were previously conducting, or are registered or licensed to conduct, their business
26	operations, and shall not be required to file any document, pay any sum or take any other action,
27	in order to effectuate such withdrawal, (ii) shall be deemed to have cancelled pursuant to the
28

40

1	Plan all Interests and Other Stock Rights, and (iii) shall not be liable in any manner to any taxing
2	authority for franchise, business, license or similar taxes accruing on after the Effective Date.
3	6.11    Dissolution of the Debtors.
4	At such time as the Trustee deems appropriate, the Trustee may cause the
5	Debtors, the Non-Debtor Affiliates and CF Bermuda, to be dissolved for all purposes under
6	applicable non-bankruptcy law without the necessity for any other or further actions to be taken
7	by or on behalf of the Debtors, any Non-Debtor Affiliates or CF Bermuda, or payment of any
8	fees, charges, penalties or other amounts required by applicable non-bankruptcy law.
9	Notwithstanding the foregoing, the Trustee shall be authorized to take any actions, including the
10	filing or recording of any documents and the making of any applicable tax filings, and the
11	payment of any fees, charges or other amounts necessary or appropriate, in the reasonable
12	opinion of the Trustee, to dissolve all of the Debtors, the Non-Debtor Affiliates and
13	CF Bermuda, provided, however, that each of the Debtors, the Non-Debtor Affiliates and
14	CF Bermuda shall file, or the Trustee may file on behalf of such entities, with the official public
15	office for keeping corporate records in its state or district of organization, a certificate of
16	dissolution or equivalent document, and provided, further, that the Trustee shall, to the maximum
17	extent practicable, cause each Non-Debtor Affiliate or CF Bermuda to pay any fees, charges or
18	other amounts incurred in connection with its dissolution. The Trustee may take all actions on
19	behalf of any Debtor and Non-Debtor Affiliate to effectuate the dissolution of such Debtor or
20	Non-Debtor Affiliate, including, without limitation, the execution and filing or recording of such
21	a certificate of dissolution.
22	6.12    Compliance with ACC Settlement
23	The Debtors shall perform their obligations pursuant to the settlement between the
24	Debtors and ACC (the “ACC Settlement”), which was approved by the Court at a hearing held
25	on June 18, 2004.. Pursuant to the ACC Settlement, ACC paid the Debtors $3,975,000 (the
26	“ACC Settlement Amount”). The ACC Settlement Amount shall be used first to satisfy any
27	Claim against any of the Debtors resulting from the loss of or damage to cargo that was (i)
28	transported by such Debtor under its common carrier certificate, (ii) subject to the tariffs

41

1	maintained by such Debtor and (iii) not subject to a written, bi-lateral contract between the
2	Claimant and such Debtor (“Non-Contract Claims”), up to the maximum that ACC was liable to
3	the Claimant under the terms of the ACC Surety Bonds. The balance of the ACC Settlement
4	Amount will be retained by the Debtors and the Trust, and may be applied by the Debtors or the
5	Trust to reimburse the Debtors and the Trust for the costs of administering the Non-Contract
6	Claims and indemnifying ACC to the extent required by the ACC Settlement. In exchange for
7	the ACC Settlement Amount, ACC will be entitled to Allowed Class 4 Claims in the amounts of
8	$3,975,000 and $220,400 and an allowed Administrative Claim of $30,000.
9	To the extent any Non-Contract Claim is paid pursuant to the ACC Settlement,
10	the amount of such payment will reduce the Allowed Amount of such Claim against the Debtors.
11	6.13    Closing of the Cases.
12	When the Consolidated Estate has been fully administered, all Disputed Claims
13	against the Debtors have become Allowed Claims or have been Disallowed by Final Order, all
14	adversary proceedings or contested matters pending before the Court have been resolved by
15	Final Orders, the Trust has been terminated in accordance with the terms of the Trust Agreement,
16	and all Cash has been distributed in accordance with the Plan, or at such earlier time as the
17	Trustee and the Oversight Committee deem appropriate, the Trust shall seek authority from the
18	Court to close the Cases in accordance with the Bankruptcy Code and the Bankruptcy Rules.
19	ARTICLE VII
20	THE TRUST
21	7.1    Transfer of the Trust Property to the Trust.
22	On the Effective Date, the Debtors shall transfer and deliver to the Trust title to
23	and possession of the Trust Property.
24	7.2    Purposes of the Trust.
25	The purposes of the Trust are: (i) to liquidate, sell, or dispose of the Trust
26	Property, (ii) to cause all net proceeds of the Trust Property, including proceeds of Causes of
27	Action on behalf of the Trust, to be deposited into the Trust, (iii) to initiate actions to resolve any
28	remaining issues regarding the allowance and payment of Claims including, as necessary,

42

1	initiation and/or participation in proceedings before the Court, (iv) to take such actions as are
2	necessary or useful to maximize the value of the Trust, and (v) to make the payments and
3	Distributions to Creditors and Holders of Trust Beneficial Interests as required by the Plan. It is
4	intended that the Trust will be classified for U.S. federal income tax purposes as a
5	“liquidating trust,” with the primary objective of liquidating the Trust Property and distributing
6	the net proceeds thereof, with no objective to continue or engage in the conduct or a trade or
7	business in accordance with Treasury Regulation 301.7701-4(d), and, notwithstanding anything
8	to the contrary in the Plan, all actions taken by the Trust or any person acting on behalf of the
9	Trust shall be consistent with such primary objective.
10	7.3    Trust Agreement.
11	The Trust Agreement executed by the parties thereto shall be Filed not less than
12	ten (10) days prior to the Ballot Deadline, provided that a copy of the Trust Agreement in
13	substantially final form shall be included in the Disclosure Statement. The Trust Agreement,
14	including the designation of Trustee thereunder, shall be approved by the Court, and the
15	designated Trustee shall accept his or her duties thereunder on or before the Confirmation Date.
16	The Trust Agreement shall, among other matters, create the Trust, identify the Trustee as the
17	initial trustee of the Trust, identify the compensation of the Trustee, and specify the authorities
18	and powers of the Trustee and the Oversight Committee, consistent with this Plan.
19	7.4    Operations of the Trust.
20	From and after the Effective Date, the Trust may use, acquire, and dispose of
21	Trust Property, and take any of the actions set forth in this Article or in the Trust Agreement
22	without the approval of the Court and free of the restrictions of the Bankruptcy Code, the
23	Bankruptcy Rules, the Local Bankruptcy Rules or the prior Orders of the Court, other than
24	restrictions expressly imposed by the Plan, the Confirmation Order or the Trust Agreement,
25	provided that The Trust will be administered so that it qualifies as a liquidating trust under
26	Treasury Regulation § 301.7701-4(d). The actions of the Trust and the Trustee shall be subject
27	to the supervision and approval of the Oversight Committee as provided in the Plan and the Trust
28	Agreement.

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1	Under the Plan and, subject to the Trust Agreement, the Trustee shall have the
2	power and authority to perform the following acts:
3	(1)    Perfect and secure his right, title and interest to the properties
4	comprising the Trust Property;
5	(2)    Reduce the Trust Property to his possession and hold the same;
6	(3)    Determine when to sell Trust Property and on what terms, and sell
7	and convert the Trust Property to Cash and distribute the net
8	proceeds in accordance with the Plan and the Trust Agreement;
9	(4)    Manage and protect the Trust Property;
10	(5)    Grant options to purchase, contract to sell and sell the Trust
11	Property, or any part or parts thereof, for such purchase price and
12	for Cash or on such terms as the Trustee deems appropriate;
13	(6)    Exchange and re-exchange the Trust Property or any part or parts
14	thereof for other personal property;
15	(7)    Release, convey or assign any right, title or interest in or about the
16	Trust Property;
17	(8)    Pay and discharge any costs, expenses, collection fees or
18	obligations deemed necessary to preserve the Trust Property, or
19	any part thereof;
20	(9)    Purchase insurance to protect the Trust Property, as well as to
21	protect the Trustee, the Oversight Committee and its members,
22	from liability for such risks and in such amounts as the Trustee or
23	the Oversight Committee shall determine is appropriate provided
24	that, in the event that the annual premiums for insurance or bonds
25	to insure the Trustee or the Oversight Committee and its members
26	exceed $250,000 in the aggregate, Court approval shall be required
27	after notice to the Office of the United States Trustee, Crown
28	Enterprises, Inc., Atlas Oil Holdings, Co., the Pension Benefit

44

1	Guaranty Corporation, the Debtors and any other person that
2	specifically requests notice of post-Effective Date matters brought
3	before the Court;
4	(10)  Deposit funds of the Trust and draw checks and make
5	disbursements thereof;
6	(11)  Employ and have such professionals, including, without limitation,
7	attorneys and accountants, and such other agents, consultants and
8	employees on behalf of the Trust as the Trustee shall deem
9	necessary, provided that the Trustee’s authority to pay such
10	professionals shall be governed by the provisions of the Trust
11	Agreement; provided, further, that notwithstanding the foregoing,
12	the Trustee must disclose to the Court, in advance, with notice to
13	the Office of the United States Trustee, Crown Enterprises, Inc.,
14	Atlas Oil Holdings, Co., the Pension Benefit Guaranty
15	Corporation, the Debtors and any other person that specifically
16	requests notice of post-Effective Date matters brought before the
17	Court, the identity of any insider (as such term is defined in
18	Section 101(31) of the Bankruptcy Code) of the Trustee or any
19	member of the Oversight Committee that the Trustee intends to
20	employ at the expense of the Trust;
21	(12)  Except as expressly required by the Plan, determine when
22	Distributions should be made to the Trust Beneficiaries;
23	(13)  Exercise any and all powers granted to the Trustee by any
24	agreements or by common law or any statute which serves to
25	increase the extent of the powers granted to the Trustee hereunder;
26	(14)  Take any action required or permitted by the Plan;
27	(15)  Negotiate, renegotiate and enter into contracts and execute
28	obligations negotiable and non-negotiable;

45

1	(16)  Sue and be sued, provided that any suit commenced after the
2	Effective Date against the Trust, or against the Trustee acting in his
3	or her capacity as trustee of the Trust, must be commenced in the
4	Court, provided, further, that the Court may abstain from hearing
5	any such suit;
6	(17)  Pursue claims and Causes of Action assigned to the Trust or the
7	control of which is assumed by the Trust pursuant to the Plan, as
8	the designated representative of the Consolidated Estate;
9	(18)  Institute on behalf of the Trust all claims and Causes of Actions
10	which could be brought by a trustee or debtor-in-possession under
11	the Bankruptcy Code, and prosecute or defend all appeals on
12	behalf of any of the Debtors, as representative of the Consolidated
13	Estate within the meaning of section 1123(b)(3)(B) of the
14	Bankruptcy Code;
15	(19)  Object to Claims;
16	(20)  Settle, compromise or adjust, by arbitration or otherwise, any
17	Claims, disputes or controversies in favor of or against the Trust;
18	(21)  Waive or release rights of any kind;
19	(22)  Cause the Debtors, the Non-Debtor Affiliates and CF Bermuda to
20	be dissolved for all purposes under applicable non-bankruptcy law,
21	and, in connection therewith, take any necessary or appropriate
22	actions on behalf of any of the Debtors, the Non-Debtor Affiliates
23	and CF Bermuda, including the filing or recording of any
24	documents, the making of any applicable tax filings, the execution
25	and filing or recording of such a certificate of dissolution or
26	equivalent document for the dissolution of the Debtors, the Non-
27	Debtor Affiliates or CF Bermuda, the payment of any fees, charges
28	or other amounts necessary or appropriate, in the reasonable

46

1	opinion of the Trustee, to dissolve all of the Debtors, the Non-
2	Debtor Affiliates and CF Bermuda, provided, however, that each
3	of the Debtors, the Non-Debtor Affiliates and CF Bermuda shall
4	file, or the Trustee may file on behalf of such entities, with the
5	official public office for keeping corporate records in its state or
6	district of organization, a certificate of dissolution or equivalent
7	document;
8	(23)  Appoint, remove and act through agents, managers and employees
9	and confer upon them such power and authority as may be
10	necessary or advisable;
11	(24)  File all income and informational tax returns and forms of the
12	Trust and the Reserve for Disputed Claims as required by law,
13	and pay all taxes required to be paid by the Trust or the Reserve for
14	Disputed Claims; and
15	(25)  In general, without in any manner limiting any of the foregoing,
16	deal with the Trust Property, or any part or parts thereof, and the
17	affairs of the Trust, in all other ways as would be lawful for any
18	person owing the same to deal therewith, whether similar to or
19	different from the ways above specified, at any time or times
20	hereafter.
21	7.5    Supervision by Oversight Committee.
22	The Trustee, and the activities of the Trust, shall be subject to the review and
23	supervision of the Oversight Committee. The Oversight Committee shall have the powers and
24	duties with respect to the Trust, the Trustee and the Trust Property as set forth in the Trust
25	Agreement, including, without limitation, the power to approve or disapprove “Material Actions”
26	as defined in the Trust Agreement. In the event of a dispute between the Trustee and the
27	Oversight Committee with respect to any proposed Material Action, the Court shall have
28	jurisdiction to determine whether the proposed action should be taken, upon motion made by the

47

1	Trustee or the Oversight Committee. For purposes of the Trust Agreement, “Material Actions”
2	includes both affirmative actions proposed to be taken and actions proposed not to be taken by
3	the Trustee.
4	7.6    The Trustee.
5	7.6.1   Trustee Compensation.
6	The initial Trustee shall receive compensation for his services as trustee of
7	the Trust in accordance with the Trustee Services Agreement. Any subsequent Trustee shall
8	receive compensation in accordance with the Trust Agreement.
9	7.6.2   Resignation or Replacement of Trustee.
10	The Trustee may resign or be terminated at any time in accordance with the
11	terms of the Trust Agreement. Upon such resignation or termination, the Trustee shall be
12	entitled to receive any unpaid compensation or expense reimbursement owing to the Trustee in
13	accordance with the terms of the Trust Agreement.
14	In case of the resignation, termination, death or inability to act of the Trustee, a
15	successor Trustee may be appointed without Court approval in accordance with the terms of the
16	Trust Agreement, whereupon such the successor Trustee shall take over from the resigned,
17	terminated or incapacitated Trustee. The successor Trustee shall be vested with all the rights,
18	privileges, powers and duties of the Trustee named herein. Each succeeding Trustee may in like
19	manner resign and another may in like manner be appointed in his or her place.
20	7.7    Payment of Trust Expenses.
21	Trust Expenses shall be paid, or adequate reserves created for Trust Expenses,
22	prior to any Distribution to the Trust Beneficiaries.
23	7.8    Distributions.
24	The Trustee, personally or through the Disbursing Agent, shall be responsible for
25	making the Distributions to Trust Beneficiaries in accordance with the terms of the Plan.
26	7.9    No Payment of Transfer-Related Fees to the United States Trustee.
27	The Trust shall not be required to pay any fees to the United States Trustee based
28	on any transfers of Trust Property to or from the Trust.

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1	7.10    Limitations on Payments to Certain Professionals.
2	Other than as set forth in the next sentence, the Trustee may not, without the prior
3	approval of the Court, directly or indirectly compensate any broker, consultant or other
4	professional in an amount in excess of $25,000 in connection with the sale by the Trust of any
5	single parcel of real property for which the aggregate sale price is, or is reasonably expected by
6	the Trustee to be, more than $3,000,000. Notwithstanding the foregoing sentence, the Trustee
7	may, without any specific approval of the Court, employ and compensate a broker, consultant or
8	other professional who is directly retained by the Trustee or the Oversight Committee, unless
9	such broker, consultant or other professional is retained or compensated or is required to be
10	retained or compensated as a condition to any purchase offer.
11	If Court approval of any payment to a broker, consultant or other professional is
12	required pursuant to the preceding paragraph, the Trust shall be permitted to compensate any
13	such broker, consultant or other professional only if the Court finds that the compensation is
14	reasonable and that the services of such broker, consultant or other professional were bona fide,
15	reasonably required to consummate the transaction and benefited the Trust. In making the
16	determination as to reasonable compensation, the Court shall consider the amount of
17	compensation requested for any such broker, consultant or other professional and the amount of
18	time reasonably spent by such broker, consultant or other professional and appropriately
19	documented, in providing assistance with respect to the transaction, and shall not approve
20	compensation that results in an unreasonably hourly rate for such services.
21	Should an offer or proposal for the purchase of any such property be received by
22	the Trust which contains a provision requiring the Trust to directly or indirectly compensate a
23	broker, consultant or other professional, which offer or proposal is then followed by a subsequent
24	offer at a lower price without the same compensation requirement, then there shall be a
25	presumption that the reduced amount is being used by the offeror to compensate such
26	professional; in such instance or if the Trustee reasonably believes that the offeror has taken any
27	other action with the purpose of evading the intent of the preceding two paragraphs, Court
28

49

1	approval of the reduction shall be required consistent with the provisions of the preceding
2	paragraphs.
3	7.11    Trust Books And Records.
4	The Trustee, and to the extent of payments and Distributions by the Disbursing
5	Agent, the Disbursing Agent, shall maintain an accounting of receipts and disbursements of the
6	Trust. All of the Debtors’ books and records held by the Debtors as of the Effective Date, and
7	which are relevant to the activities of the Trust, shall be delivered to the Trust for use by the
8	Trustee in performing its duties under the Plan. The Trust shall hold such books and records, or
9	provide storage for such book and records, for the longer of six (6) years, or while the Trust is
10	in existence, provided that the Court may, upon application by the Trustee, authorize the Trust to
11	destroy all of the Debtors’ books and records at such time as the Trust has no further need for
12	such books and records. The Trust books and records shall be open to inspection by the
13	representatives of the Oversight Committee at all reasonable times. In the event the Trustee
14	discovers any documents or records with respect to the Defined Benefit Pension Plan which the
15	Trustee believes the Debtors have not previously sent the originals, or copies thereof, to the
16	PBGC, the Trustee shall, promptly notify the PBGC of the discovery of such documents or
17	records, and arrange for the transmittal of such documents or records to the PBGC, or at the
18	option of the PBGC, their duplication and transmittal of the duplicates to the PBGC. The
19	Trustee shall provide notice to the PBGC before the destruction of any documents or records
20	related to the Defined Benefit Pension Plan, and shall not destroy any such documents without
21	the consent of the PBGC, unless the Trustee tenders possession of such documents or records in
22	writing to the PBGC, and the PBGC does not accept such tender of possession within
23	twenty (20) days after the tender is made.
24	7.12    Limitations on Liability.
25	The Trustee shall not be liable for any act he or she may do or fail to do as
26	Trustee hereunder while acting in good faith and in the exercise of his or her best judgment, and
27	the fact that such act or omission was approved by the Oversight Committee or advised or
28	approved by counsel acting for the Trust, shall be conclusive evidence of such good faith and

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1	best judgment. The Trustee shall not be liable in any event for any claims, liabilities or damages
2	based upon or arising out of any conduct of the Trustee in the course of his or her activities as
3	trustee, unless such claims, liabilities or damages arise from his or her personal gross negligence
4	or willful misconduct.
5	The Trustee, the Oversight Committee, and the members of the Oversight
6	Committee shall not be liable for any indebtedness, liability or obligation incurred or entered into
7	on behalf of the Trust, including, without limitation, indebtedness, liabilities or obligations under
8	agreements, undertakings or commitments entered into executed on behalf of the Trust by the
9	Trustee or by any person employed by the Trustee or the Trust, it being expressly understood
10	that all such indebtedness, liabilities and obligations of, and claims against the Trust, shall be the
11	sole responsibility of the Trust and shall be satisfied only from the Trust Property, or such
12	portion thereof as shall, under the terms of any agreement, be stated to be liable therefor. No
13	claim or cause of action may be asserted against the Trustee, the Oversight Committee, or any
14	member of the Oversight Committee on account of any indebtedness, liability or obligation
15	entered into on behalf of the Trust, whether by legal or equitable proceedings, or by virtue of any
16	bankruptcy or non-bankruptcy statute, rule or regulation.
17	Any undertaking, contract or agreement entered into in writing by the Trust may,
18	except as otherwise provided by the Plan or the Trust Agreement, expressly disclaim the
19	personal liability of the Trustee and the members of the Oversight Committee.
20	7.13    No Credit Reporting.
21	The Trustee shall have no duty or responsibility to provide any Person with any
22	credit or other information with respect to the Trust except as provided in the Plan or the Trust
23	Agreement.
24	7.14    United States Federal Income Tax Treatment of the Holders of Trust
25	Beneficial Interests.
26	For all United States federal income tax purposes, the transfers by the Debtors to
27	the Trust described in sections 6.1 and 7.1 shall be treated by the Debtors, the Trust and the Trust
28	Beneficiaries as a transfer of the Trust Property by the Debtors to the Trust Beneficiaries and the

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1	Reserve for Disputed Claims, followed by a transfer of the Trust Property by such Trust
2	Beneficiaries and the Reserve for Disputed Claims to the Trust. The Trust Beneficiaries and the
3	Reserve for Disputed Claims shall be treated as the grantors and deemed owners of the Trust for
4	United States federal income tax purposes. The Trustee and the Trust Beneficiaries are required
5	to value their interests in the Trust Property consistently with the values placed upon the Trust
6	Property by the Trust, and to use such valuations for all purposes. The Trust Agreement shall
7	provide for consistent valuations of the Trust Property by the Trustee and the Trust Beneficiaries,
8	and shall provide that the Trust will determine the fair market value of the Trust Property within
9	thirty (30) days after the Effective Date, and send such determination to each Trust Beneficiary.
10	By its acceptance of a Trust Beneficial Interest, each recipient of such an interest will be
11	conclusively deemed to agree to use such valuations for all purposes, including, without
12	limitation, in computing any gain recognized upon the exchange of such Holder’s Claim for
13	purposes of determining any United States Federal income tax, and shall be required to include
14	those items of income, deductions and tax credits that are attributable to its Trust Beneficial
15	Interest in computing its taxable income.
16	7.15    Termination of the Trust.
17	The Trust shall continue in effect until the earlier of: (a) the date that all Trust
18	Property has been liquidated, all proceeds have been converted to Cash or distributed in kind, all
19	Trust Expenses have been paid, all Claims to be paid under the Plan have been paid, all
20	Distributions to be made with respect to the Trust Beneficial Interests have been made, all
21	litigation to which the Trust is a party has been concluded by an order issued by the court in
22	which such litigation is pending and such order has become “final” (consistent with the
23	definition of Final Order in this Plan for Orders issued by the Court), and the Cases have been
24	closed in accordance with section 6.12, and (b) the expiration of five (5) years from the Effective
25	Date, provided, that the Trustee may request the Court to extend the permitted life of the Trust
26	for such additional period as is reasonably necessary to conclude the liquidation and
27	distributions, not to exceed a total of ten (10) years from the Effective Date, which request shall
28

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1	be Filed so the Court may consider and rule on the request within six (6) months prior to the
2	expiration of the initial five-year term.
3	ARTICLE VIII
4	OVERSIGHT COMMITTEE
5	8.1    Oversight Committee As Representative Of Creditors.
6	The Oversight Committee appointed in accordance with section 6.8 shall
7	constitute a representative of Holders of Class 4 Claims, formed for the purpose, inter alia, of
8	monitoring the implementation of the Plan, supervising the activities of the Trust, and the
9	distributions to Holders of Allowed Claims under the Plan. The Oversight Committee shall have
10	no duty to Creditors other than Holders of Class 4 Claims, nor to Holders of Interests.
11	8.2    Oversight Committee Procedures.
12	The Oversight Committee shall prescribe its own rules of procedure and bylaws,
13	provided that such rules of procedure and bylaws shall not be inconsistent with the terms of the
14	Plan or the Trust Agreement. The Oversight Committee rules of procedure may provide that, in
15	the event any member of the Oversight Committee resigns subsequent to the Effective Date, the
16	Oversight Committee may appoint a replacement for the resigned member without approval by
17	the Court.
18	8.3    No Oversight Committee Compensation.
19	Except for the reimbursement of reasonable actual costs and expenses incurred in
20	connection with their duties as Oversight Committee members, the members of the Oversight
21	Committee shall serve without compensation. Reasonable expenses incurred by members of the
22	Oversight Committee may be paid by the Trust without need for Court approval.
23	8.4    Retention Of Professionals by the Oversight Committee.
24	The Oversight Committee shall have the authority to employ, at the expense of
25	the Trust, counsel and such other professionals as may be reasonably necessary, in its discretion,
26	to assist in the Oversight Committee’s duties under the Plan, including the oversight of the Trust
27	and the Trustee regarding liquidation of the assets in the Trust and distributions to Holders of
28	Allowed Claims. The Oversight Committee is authorized to employ such professionals without

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1	approval by the Court; provided that, notwithstanding the foregoing, the Oversight Committee
2	must disclose to the Court, in advance, with notice to the Office of the United States Trustee,
3	Crown Enterprises, Inc., Atlas Oil Holdings, Co., the Pension Benefit Guaranty Corporation, the
4	Debtors and any other person that specifically requests notice of post-Effective Date matters
5	brought before the Court, the identity of any insider (as such term is defined in section 101(31)
6	of the Bankruptcy Code) of the Trustee or any member of the Oversight Committee that the
7	Oversight Committee intends to employ at the expense of the Trust. Under the Trust Agreement,
8	the Trustee shall have authority to dispute the proposed employment of any professional by the
9	Oversight Committee, the rendering of particular services or the payment of any items of
10	compensation or expense reimbursement for such professionals, only in the event the Trustee
11	asserts that such employment or payment constitutes a significant waste of Trust Property. In the
12	event of such a dispute, the Court shall have jurisdiction to resolve such dispute.
13	8.5    Limitations on Oversight Committee Liability.
14	The Oversight Committee and its members shall not be liable for any act any
15	member may do or fail to do as a member of the Oversight Committee while acting in good faith
16	and in the exercise of the member’s best judgment, and the fact that such act or omission was
17	advised, directed or approved by counsel acting for the Oversight Committee, shall be conclusive
18	evidence of such good faith and best judgment. No Oversight Committee member shall be liable
19	in any event for claims, liabilities or damages unless they arise from such member’s personal
20	gross negligence or willful misconduct.
21	The Oversight Committee and its members shall also be entitled to the benefits of
22	section 7.12 of the Plan.
23	8.6    Termination Of Oversight Committee.
24	The Oversight Committee shall dissolve upon the completion of all Distributions
25	to Trust Beneficiaries and the termination of the Trust in accordance with the terms of the Plan
26	and the Trust Agreement.
27
28

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1	ARTICLE IX
2	PAYMENTS AND DISTRIBUTIONS
3	9.1    Payments and Distributions in General.
4	The Trust shall make all payments and distributions required to be made under the
5	Plan. All payments and distributions to Holders of Allowed Claims under the Plan, including
6	Distributions to the holders of Trust Beneficial Interests, may be made by the Trustee, or by the
7	Disbursing Agent, if a Disbursing Agent has been appointed under the Plan.
8	9.2    Priority of Payments and Distributions From The Trust.
9	The Trust shall first make payments to, or create reserves reasonably determined
10	by the Trustee to be adequate (subject to the review of the Oversight Committee as set forth in
11	the Trust Agreement) for payments to, (i) Holders of Class 1 Secured Claims (to the extent of the
12	value of the Collateral subject to their Liens), (ii) Administrative Claims, (iii) Professional
13	Claims, (iv) Priority Non-Tax Claims, (v) Priority Tax Claims (to the extent of Cash payments
14	due to them pursuant to section 3.3 of the Plan), and (vi) Trust Expenses, until all of such Claims
15	and expenses have been paid in full or adequate reserves have been established to satisfy such
16	Claims and expenses. Once such Holders are paid in full or such reserves are created, payments
17	shall be made on a Pro Rata basis to Holders of Allowed Class 3 Claims until such Allowed
18	Claims are paid in full. Thereafter, funds remaining in the Trust shall be paid on a Pro Rata basis
19	to Holders of Allowed Class 4 Unsecured Claims.
20	In the event that Holders of Allowed Class 4 Unsecured Claims are, at any time,
21	paid in full or reserves are created for the payment in full of Claims in such Class, payments
22	shall be made on a Pro Rata basis to Holders of Allowed Class 5 Claims until such Allowed
23	Claims are paid in full.
24	In the event that Holders of Allowed Class 5 Unsecured Claims are, at any time,
25	paid in full or reserves are created for the payment in full of Claims in such Class, payments
26	shall be made on a Pro Rata basis to Holders of Allowed Class 6 Claims until such Allowed
27	Claims are paid in full.
28

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1	In the event that, at any time, there is insufficient Cash to make payment in full to
2	any group of unclassified Claims of equal priority under the Plan or to any Class of Claims, then
3	all payments made to such group of unclassified Claims or to such Class of Claims, or the
4	reserves created for Holders of such Disputed Claims in such group of unclassified Claims or
5	such Class, shall be made or created Pro Rata until all Claims in such group or Class are paid
6	in full.
7	9.3    Distributions.
8	On the Effective Date, or as soon thereafter as reasonably practicable, the Trust
9	shall distribute to the Holders of Allowed Administrative Claims, Allowed Priority Tax Claims,
10	Allowed Professional Claims, and Allowed Claims in Classes 1, 2, and 3, Cash equal to the
11	payments and distributions which such Holders and the Holders of Claims in such Classes are
12	entitled to receive as of the Effective Date, as set forth in the Plan, or deliver Collateral to the
13	Holders of Allowed Secured Claims in Class 1 pursuant to the Plan or provide to the Holders of
14	Allowed Secured Claims such other treatment as set forth in the Plan which is due as of the
15	Effective Date. From time to time after the Effective Date, as soon as practicable after Claims
16	become Allowed Class 4 Claims pursuant to a Final Order or the deadline to object to any such
17	Claims expires without an objection being asserted, the Trust shall record in the books of the
18	Trust in favor of the Holders of such Class 4 Claims the Trust Beneficial Interests to which they
19	are entitled.
20	9.4    Distributions to Classes 4, 5 and 6 Pro Rata.
21	All Distributions to Holders of Allowed Claims in Classes 4, 5 and 6 under the
22	Plan shall be Pro Rata within each such Class.
23	9.5    Initial and Supplemental Distributions and Record Dates for
24	Distributions to Class 4.
25	Subject to the Trust having sufficient available Cash as required by section 9.6, as
26	soon as practicable after the Effective Date, the Trust shall make the initial Distribution to the
27	Holders of Allowed Class 4 Claims, provided, that no Distribution shall be made or required to
28	be made at any time to Holders of Allowed Class 4 Claims with respect to which the deadline for

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1	an objection to such Claims has not expired unless the Debtors and the Committee or the
2	Oversight Committee, as applicable, have Filed a notice of non-objection as provided in clause
3	(iv) of the definition of the term “Allowed” with respect to such Claims. Subject to the Trust
4	having sufficient available Cash as required by section 9.6, the Trust shall be required to make a
5	Distribution to Holders of Trust Beneficial Interests on account of each calendar quarter during
6	the term of the Trust other than the calendar quarter in which the initial Distribution is made. In
7	the event the Trust has not made a Distribution with respect to any of the first three calendar
8	quarters in any calendar year, the Trust shall be required to make a Distribution to Holders of
9	Trust Beneficial Interests as of the end of such calendar year, whether or not the minimum Cash
10	is available, as provided in section 9.6. All Distributions to Holders of Trust Beneficial Interests
11	shall be made effective as of the last Business Day of the calendar quarter or calendar year with
12	respect to which each Distribution is made, or such other date as the Trustee determines to make
13	a Distribution (the “Record Date”), to holders of Trust Beneficial Interests that held Allowed
14	Class 4 Claims on the Effective Date and that have become holders of Trust Beneficial Interests
15	as of the date which is twenty (20) days before the Record Date. The Trust shall not be required
16	to make a Distribution with respect to calendar year 2004 in the event the Effective Date has not
17	occurred by November 1, 2004.
18	9.6    Minimum Distribution Amount for Class 4.
19	The Trust shall not be obligated to make a Distribution to holders of Trust
20	Beneficial Interests (other than a required annual Distribution as set forth in section 9.5 or the
21	final Distribution as set forth in section 9.16, below) unless the Trust holds an amount equal to
22	one million dollars ($1,000,000) or more for such Distribution. At any time that the Trust holds
23	an amount less than one million dollars ($1,000,000) for Distribution to holders of Trust
24	Beneficial Interests, the Trust shall hold such funds and shall make a Distribution to holders of
25	Trust Beneficial Interests at such future time, in accordance with section 9.5, as the Trust has
26	received additional Cash such that it holds funds for such Distribution in the minimum amount
27	under this section, or at such time as the Trust makes a required annual Distribution or the
28	final Distribution to such holders. In the case of a required annual Distribution, the Trust shall

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1	distribute all Cash held by it in excess of funds in the Reserve for Disputed Claims, plus amounts
2	reasonably estimated by the Trustee as necessary to maintain the value of remaining Trust
3	Property, and to pay additional costs and expenses of operation of the Trust and contingent
4	liabilities of the Trust.
5	9.7    Payments and Distributions to Holders of Disputed Claims Which
6	Become Allowed Claims.
7	Following the Effective Date, as soon as reasonably practicable after
8	(i) a Disputed Claim becomes an Allowed Claim, (ii) the deadline to object to a previously-
9	Allowed Claim expires and no objection has been asserted, or (iii) a notice of non-objection is
10	Filed with respect to an Allowed Claim as provided in clause (iv) of the definition of the term
11	“Allowed,” the Holder of such Allowed Claim shall be entitled to receive such payments and
12	distributions which the Holder of such an Allowed Claim would have received if its Claim were
13	an Allowed Claim as of the Effective Date. The Holder of a Disputed Class 4 Claim which
14	becomes an Allowed Class 4 Claim shall receive its Pro Rata share of any Distributions which
15	have been made on account of Class 4 Claims prior to the date such Disputed Claim becomes an
16	Allowed Class 4 Claim, but only with respect to the portion of such Disputed Claim which has
17	become an Allowed Class 4 Claim.
18	9.8    Reserve for Disputed Claims.
19	Notwithstanding any other provisions of the Plan, no payment or Distribution
20	shall be made to the Holder on account of any Disputed Claim until such Claim becomes an
21	Allowed Claim, and then only to the extent that it becomes an Allowed Claim. At any time that
22	a Distribution is made to any Class under the Plan that is required to be made Pro Rata to the
23	members of such Class, such Distribution shall be made to all of the Holders of Allowed Claims
24	in such Class, and the Pro Rata portion of such Distribution which would be distributed to the
25	Holders of Disputed Claims, in the event such Claims become Allowed Claims in the Face
26	Amount of such Claims, shall be withheld by the Trust and allocated to the Reserve for Disputed
27	Claims pending resolution of the Disputed Claims. The party making the Distribution shall be
28	required to allocate the appropriate funds to the Reserve for Disputed Claims, provided that the

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1	Trustee (and Disbursing Agent) shall not be required to place Cash in a separate account or
2	otherwise segregate funds from the assets of the Trust for purposes of the Reserve for Disputed
3	Claims.
4	To the extent that any Disputed Claim becomes an Allowed Claim after a
5	Distribution has been made with respect to the Class of which such Disputed Claim is a member,
6	the Cash reserved for such Disputed Claim shall be distributed to the Holder of the Allowed
7	Claim in a manner and Pro Rata amount consistent with the treatment of Allowed Claims in that
8	Class. Any portion of a Distribution that was allocated to the Reserve for Disputed Claims on
9	account of a Disputed Claim, and that, upon the Allowance of all or a portion of such Claim, is
10	finally determined not to be payable to the Holder of such Claim, shall thereupon be available for
11	use by the Trust for any proper purpose, including to make future Distributions to the Holders of
12	Allowed Claims in the affected Class on a Pro Rata basis.
13	9.9    Delivery of Payments and Distributions in General.
14	Except as provided in section 9.14 below for Holders of undeliverable
15	Distributions, payments and Distributions to Holders of Allowed Claims shall be made: (a) at the
16	addresses set forth in the proofs of Claim Filed by such Holders; (b) at the addresses set forth in
17	any written notices of address change delivered to the Trust (or to the Debtors prior to the
18	Effective Date) after the date on which any related proof of Claim was Filed, but not later than
19	the Record Date for any payment of Distribution; or (c) at the address (i) reflected in the
20	Schedules of Assets and Liabilities relating to the applicable Allowed Claim if no proof of Claim
21	has been Filed and the Trust has not received a written notice of a change of address, or
22	(ii) reflected in a written notice of change of address from such Holder delivered to the Trust., if
23	such a notice was received by the Trust not later than the Record Date for any payment or
24	Distribution.
25	9.10    Cash Payments.
26	Cash payments to be made pursuant to the Plan shall be made in U.S. dollars, by
27	checks drawn on a domestic bank or by wire transfer from a domestic bank, at the option of the
28	Trustee.

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	9.11    No Interest on Claims.
2	Unless otherwise specifically provided for in the Plan or the Confirmation Order,
3	post-Petition Date interest shall not accrue or be paid on any Claims, and no Holder of a Claim
4	shall be entitled to interest which might otherwise have accrued from or after the Petition Date
5	on any Claim. Interest shall not accrue or be payable with respect to any Disputed Claim for the
6	period from the Petition Date to the date a Distribution is made with respect to such Disputed
7	Claim, if and when such Disputed Claim becomes an Allowed Claim. No interest shall accrue or
8	be payable from the date a Distribution is made to Holders of Allowed Claims in the Class of
9	which the Holder of the Disputed Claim is a member, to the date the Disputed Claim becomes an
10	Allowed Claim and a Distribution is made on account of the previously-Disputed Claim based
11	upon prior Distributions to Holders of Allowed Claims in such Class.
12	9.12    Minimum Amounts of Distributions.
13	Except as provided in section 9.16 for a final Distribution, no Distribution shall be
14	made in an amount of less than $100.00 on account of any Allowed Class 4 Claim. Amounts not
15	distributed to Holders of Allowed Class 4 Claims because of this section shall be held by the
16	Trust for payment to the Holders of such Allowed Claims in conjunction with subsequent
17	Distributions. The Trust shall keep a record of amounts not distributed to Holders of Allowed
18	Class 4 Claims because of this section, and such amounts shall be included in the next
19	subsequent Distribution to each such Holder, provided the minimum amount of Distribution is
20	satisfied for such subsequent Distribution to the Holder of such Claim.
21	9.13    Surrender of Instruments.
22	Each Holder of a promissory note, bond, or other Instrument evidencing a Claim
23	shall surrender such promissory note, bond, or instrument to the Trust prior to being entitled to
24	receive any Distribution, unless this requirement is waived by the Trust, provided, however, that
25	this section shall not apply to GE Capital. No Distribution of Cash or other property shall be
26	made to or on behalf of any such Holder unless and until such promissory note, bond, or
27	Instrument is received by the Trust, the unavailability of such promissory note, bond, or
28	Instrument is established to the reasonable satisfaction of the Trust or such requirement is waived

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1	by the Trust. The Trust may require any Holder which is unable to surrender or cause to be
2	surrendered any such promissory note, bond, or Instrument to deliver an affidavit of loss and
3	indemnity and/or furnish a bond in form and substance (including, without limitation, with
4	respect to amount) reasonably satisfactory to the Trust. Any Holder that fails within the later of
5	(i) one year after the Effective Date, and (ii) the date of Allowance of its Claim, (a) if possible, to
6	surrender or cause to be surrendered such promissory note, bond or Instrument, or (b) if
7	requested, to execute and deliver an affidavit of loss and indemnity reasonably satisfactory to the
8	Trust, shall be deemed to have forfeited all rights, claims, and causes of action against the
9	Debtors and the Trust and shall not participate in any Distribution under this Plan.
10	9.14    Undeliverable Payments and Distributions.
11	If any payment or distribution to any Holder of an Allowed Claim is returned to
12	the Trust as undeliverable, no further payment or distribution shall be made to such Holder
13	unless and until the Trust is notified in writing of such Holder’s then current address.
14	Undeliverable payments and distributions shall remain in the possession of the Trust pursuant to
15	the Plan in trust for the benefit of Holders of Allowed Claims until such time as a payment or
16	distribution becomes deliverable or the deadline set forth in this section expires without the
17	Holders of such Claims providing valid addresses for delivery of payments or distributions to
18	them. The Trustee shall pay, or cause to be paid, out of funds held in the Trust, any tax imposed
19	by any federal, state or local taxing authority on the income generated by the funds held with
20	respect to such undeliverable payments. The Trustee shall also file, or cause to be filed, any tax
21	return related to such undeliverable payments.
22	Any payment or distribution to a Holder of a Claim that is returned to the Trust as
23	undeliverable will be held in the Trust for at least 180 days and the Trust will not make any
24	future payment and distributions to such Holder unless such Holder provides the Trust with its
25	current address. Except with respect to payments made on account of Claims Allowed under the
26	WARN Settlement (as defined in the Disclosure Statement) (which will be handled in
27	accordance with the terms of that settlement), if at the end of the 180-day period the Holder has
28	not made a claim for such undelivered payment or distribution or provided the Trust with its

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1	current address, the amount of such payment or distribution retained by the Trust shall be
2	deposited with the registry of the Court to be held subject to the rights of such Holder to receive
3	such payment or distribution, and the Holder of such Claim shall be forever barred from
4	asserting any such claim for an undeliverable payment or distribution against the Trust or its
5	property. Nothing contained in the Plan shall require the Trust to attempt to locate any Holder of
6	an Allowed Claim.
7	9.15    No Duplicate Distributions.
8	Holders of Claims against more than one Debtor, which Claims are based upon or
9	relate to the same or similar facts, circumstances, indebtedness or obligations, shall be entitled to
10	receive a single payment in connection with each set of Distributions made by the Trust on
11	account of all such multiple Claims, and such Distribution shall be based upon the largest
12	amount for which any of such multiple Claims is Allowed, notwithstanding the fact that such
13	Holders may have filed proofs of such Claims or asserted such Claims against more than one of
14	the Debtors.
15	9.16    Final Distribution.
16	As soon as practicable after all Trust Property has been converted to Cash, the
17	Trustee shall distribute all available Cash to the Holders of Allowed Claims entitled thereto in
18	accordance with the provisions of the Plan and the Trust Agreement, provided, that no final
19	Distribution shall be made in an amount of less than $25.00 on account of any Allowed Class 4
20	Claim.
21	9.17    Credit Against Distributions to the PBGC.
22	The first five hundred thousand dollars ($500,000) of payments owed to the
23	PBGC on account of its Allowed Class 4 Claim (in the amount of $120 million, pursuant to the
24	Consolidation Order), from any of the sources described in this section, shall be paid to the
25	Consolidated Estate if received by the PBGC prior to the Effective Date, and paid or credited to
26	the Trust if received by or payable to the PBGC after the Effective Date. In either case, such
27	funds will be available for general purposes of the Consolidated Estate and the Trust, including
28	subsequent distributions to Holders of Claims (including, Distributions to the PBGC to the extent

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1	payable on account of the PBGC’s Allowed Class 4 Claim). The $500,000 payment or credit in
2	the aggregate would be taken from the first amounts payable to the PBGC from any of the
3	following sources: (a) ”LLC Net Proceeds” as defined in the Consolidation Stipulation,
4	(b) ”Canada Net Proceeds” as defined in the Consolidation Stipulation, and (c) Distributions
5	owed to the PBGC from the Trust on account of the PBGC’s Allowed Class 4 Claim. Once the
6	PBGC foregoes payments or Distributions from any of the identified sources in the aggregate
7	amount of $500,000, then this section shall be satisfied and the PBGC shall thereafter be entitled
8	to receive all additional payments or Distributions from all of such sources.
9	9.18    No Distributions to Holders of Claims in Classes 7 through 9 or
10	Interests in Classes 10 through 15.
11	Holders of Allowed Claims in Classes 7, 8 and 9 and Allowed Interests in
12	Classes 10, 11, 12, 13, 14 and 15 will not receive any payment or distributions of Cash or other
13	property under the Plan on account of their Claims or Interests.
14	9.19    Compliance with Tax Requirements.
15	In connection with the Plan and the Distributions made in accordance with the
16	Plan, to the extent applicable, the Trustee or Disbursing Agent shall comply with all tax
17	withholding and reporting requirements imposed on the Trust or the Reserve for Disputed
18	Claims by any governmental unit, and all Distributions pursuant to the Plan shall be subject to
19	such withholding and reporting requirements. The Trustee and Disbursing Agent shall be
20	authorized to take any and all actions that may be necessary or appropriate to comply with such
21	withholding and reporting requirements and to pay any taxes imposed on the Trust, the Reserve
22	for Disputed Claims or amounts held with respect to undeliverable payments.
23	9.20    Setoffs.
24	Nothing in the Plan shall impair the right of any Person, including the Debtors, to
25	set off any obligation which it has against any mutual obligation of another party in accordance
26	with applicable non-bankruptcy law or to assert a right of recoupment in accordance with
27	otherwise applicable non-bankruptcy law. Subject to the preceding sentence, the Trust may, but
28	shall not be required to, set off claims of any nature that the Debtor or the Trust may have against

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1	the Holder of any Allowed Claim, whether or not the Debtor’s or the Trust’s claim is released
2	pursuant to the Plan, against any Allowed Claim of such Holder, and against the Distributions to
3	be made by the Trust pursuant to the Plan on account of such Allowed Claim, provided,
4	however, that neither the failure to effect such a setoff, nor the allowance of any Claim against
5	the Debtor or Trust, shall constitute a waiver or release by the Debtor or the Trust of any claim
6	that the Debtor or the Trust may possess against such Holder. Any Creditor that receives a
7	distribution(s) under this Plan and thereafter seeks to exercise a valid right of setoff or
8	recoupment with respect to the unpaid portion of its Allowed Unsecured Claim shall, as a
9	condition to the exercise of such right, return to the Trust an amount, if any, equal to the
10	difference between the amount of the distribution(s) received by such Creditor under the Plan
11	and the amount of the distribution(s) such Creditor would have received had the setoff or
12	recoupment occurred as of the Effective Date. Thus, for example, if a Creditor has an Allowed
13	Unsecured Claim in the amount of $1,000,000 and the distribution to Holders of Allowed Class 4
14	Claims equals $.15 for every $1 of Allowed Unsecured Claim under the Plan, the Creditor would
15	receive $150,000 in Distributions under the Plan. If the Trustee thereafter asserts an action
16	against the Creditor seeking $800,000 in damages, assuming that (a) the Creditor could exercise
17	the right of setoff with respect to this liability under applicable non-bankruptcy law and (b) the
18	setoff had occurred as of the Effective Date (before any Distributions under the Plan had
19	occurred), the Creditor’s Unsecured Claim would have been Allowed in the amount of $200,000
20	($1,000,000 less the $800,000 setoff), for which it would have received Distributions totaling
21	$30,000 in the aggregate. Thus, in order for the Creditor to exercise its right of setoff in this
22	instance, it would be required to pay to the Trust $120,000, which equals the difference between
23	the $150,000 in actual Distributions that such Creditor received under the Plan and the $30,000
24	in Distributions that it would have received under the Plan had the setoff been exercised on or
25	before the Effective Date.
26
27
28

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1	ARTICLE X
2	OTHER POST-CONFIRMATION LITIGATION
3	10.1    Retention and Enforcement of Causes of Action.
4	Pursuant to section 1123(b)(3) of the Bankruptcy Code, except as otherwise
5	provided in the Plan or the Confirmation Order, the Trust will have the exclusive right to enforce
6	any and all Causes of Action against any Person and rights of the Debtors that arose before or
7	after the Petition Date, including, without limitation, Avoidance Actions and other rights and
8	powers of a trustee and debtor-in-possession, which the Debtors may assert against any Person
9	whatsoever.
10	10.2    Prosecution of Causes of Action and Litigation Recoveries.
11	The Trust shall bear the expense of all litigation commenced by the Trustee to
12	enforce Causes of Action. All net proceeds arising from the prosecution of Causes of Action
13	shall be deposited in the Trust and disbursed by the Trust in accordance with the Plan.
14	ARTICLE XI
15	CONFIRMATION AND EFFECTIVE DATE CONDITIONS
16	11.1    Filing of Appendix and Other Documents in Support of Confirmation.
17	Any Appendix or other document which the Debtors File in support of
18	Confirmation shall be Filed, and may be amended at any time and from time to time and re-
19	Filed, not less than ten (10) days prior to the Ballot Deadline, except as otherwise expressly
20	provided in the Plan.
21	11.2    Conditions to Confirmation.
22	It shall be a condition to Confirmation that each of the events and actions required
23	by the Plan to occur or to be taken prior to Confirmation shall have occurred or be taken, or the
24	Debtors and the parties whose obligations are conditioned by such occurrence or action, as
25	applicable, shall have waived such occurrence or action and the Court shall confirm the Plan
26	without such occurrence or action.
27
28

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1	11.3    Conditions to Effective Date.
2	The Plan shall not become effective and the Effective Date shall not occur unless
3	and until:
4	11.3.1    The Court shall have entered an Order approving the
5	Disclosure Statement as containing adequate information within the meaning of section 1125 of the
6	Bankruptcy Code;
7	11.3.2    The Court shall have entered the Confirmation Order in
8	form and substance satisfactory to the Debtor and the Committee;
9	11.3.3    No stay of the Confirmation Order shall be in effect at the
10	time all other conditions set forth in this section 11.3 are satisfied, or waived in writing by the
11	Debtors, the Committee and any other Persons for whose benefit such conditions exist;
12	11.3.4    All documents, Instruments and agreements provided for
13	under the Plan or necessary to implement the Plan shall have been executed and delivered by the
14	parties thereto in form and substance satisfactory to the Debtors and the Committee, unless such
15	execution or delivery has been waived by all Persons for whose benefit such documents,
16	Instruments or agreements are required;
17	11.3.5    The Debtors shall have received all authorizations,
18	consents, licenses, regulatory rulings, letters, no-action letters, opinions or documents that are
19	determined by the Debtors and the Committee to be necessary to implement the Plan, including,
20	without limitation, any no-action letter from the Securities and Exchange Commission and letter
21	or other ruling from the Internal Revenue Service which the Debtors shall choose to request;
22	11.3.6    The Debtors shall hold sufficient Cash to pay all Allowed
23	Administrative Claims, Allowed Professional Claims, Allowed Priority Tax Claims, Allowed
24	Priority Non-Tax Claims and Allowed Convenience Claims on the Effective Date or as soon as
25	reasonably practicable thereafter; and
26	11.3.7    The Trust documents shall have been executed and
27	delivered in form and substance acceptable to the Debtors, the Committee and the Trust, and all
28	conditions precedent to the effectiveness of the Trust shall have been satisfied.

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1	11.4    Waiver of Conditions to Confirmation or to the Effective Date.
2	Any of the conditions to Confirmation or to the occurrence of the Effective Date
3	set forth in this Article XI may be waived in writing by the Debtors and the Committee, and by
4	all other Persons for whose benefit such conditions exist. No condition to Confirmation or to the
5	Effective Date may be waived without the consent of the Debtors and the Committee. A copy of
6	any writing waiving any condition to Confirmation or to the Effective Date shall be Filed with
7	the Court.
8	11.5    Termination of Plan for Failure To Become Effective.
9	If the Effective Date shall not have occurred on or prior to the date that is
10	ninety (90) days after the Confirmation Date, then the Plan shall terminate and be of no further
11	force or effect unless the provisions of this section are waived in writing by the Debtors and the
12	Committee. Upon the termination of the Plan pursuant to this section, the Debtors’ exclusive
13	rights to file a plan and to seek acceptance thereof under section 1121 of the Bankruptcy Code
14	shall be deemed terminated with respect to the Committee, but to no other party absent entry of
15	an Order to that effect by the Court.
16	11.6    Notice of Effective Date.
17	On the Effective Date, or as soon thereafter as is reasonable practicable, the Trust
18	shall File a “Notice of Effective Date,” which notice shall constitute appropriate and adequate
19	notice that the Plan has become effective. Except for the Filing of such notice, neither the
20	Debtors nor the Trust shall have any obligation to notify any Person of the occurrence of the
21	Effective Date, other than the Court, the Office of the United States Trustee, and the Oversight
22	Committee. A courtesy copy of the Notice of Effective Date may be sent by first class mail,
23	postage prepaid (or at the Trust’s option, by courier or facsimile) to those Persons who have
24	Filed with the Court requests for notice with respect to the Cases.
25
26
27
28

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1	ARTICLE XII
2	EFFECT OF CONFIRMATION
3	12.1    Jurisdiction of Court.
4	Until the Effective Date, the Court shall retain jurisdiction over the Debtors, the
5	Assets and the Consolidated Estate. Thereafter, jurisdiction of the Court shall be limited to the
6	subject matters set forth in Article XIII of the Plan.
7	12.2    Binding Effect.
8	Except as otherwise provided in section 1141(d) of the Bankruptcy Code, on and
9	after the Confirmation Date, the provisions of the Plan shall bind any Holder of a Claim against
10	or Interest in the Debtors, and their respective successors and assigns, whether or not the Claim
11	or Interest of such Holder is impaired under the Plan and whether or not such Holder has voted to
12	accept or reject the Plan.
13	12.3    Releases by the Debtors.
14	Except as expressly provided in the Plan, effective upon the Effective Date, each
15	of the Debtors, on its own behalf and on behalf of its estates, assigns and successors, including,
16	without limitation, the Trustee on behalf of the Trust and any trustee subsequently appointed in
17	any of the Cases or in any superseding chapter 7 case, hereby (i) waives, releases and forever
18	discharges each of the officers, directors, shareholders, members, employees, representatives,
19	advisors, attorneys, financial advisors, investment bankers or agents of the Debtors, in each case
20	at any time prior to and as of the Petition Date and that have become such individuals or entities
21	thereafter, and the Committee, each member of the Committee, solely with respect to such
22	member’s conduct in furtherance of its, his, or her duties as a member of the Committee, and not
23	with respect to the actions of such members as individual Creditors, and the Committee’s agents,
24	attorneys, financial advisors and other professionals acting in connection with the Cases, as to all
25	of the foregoing, jointly and severally, (the “Debtors’ Releasees”) and (ii) covenants and agrees
26	never to institute or cause to be instituted any suit or other form of action or proceeding of any
27	kind or nature whatsoever against any of the Debtors’ Releasees, based upon any claims,
28	demands, indebtedness, agreements, promises, causes of action, obligations, counterclaims,

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1	defenses, damages, recharacterization, or liabilities (collectively “Liabilities”) relating to:
2	(1) compensation or other consideration paid or transferred to any of the Debtors Releasees, but
3	only to the extent that (i) such compensation and other consideration is reflected on the books
4	and records of the entity which paid such compensation or consideration and (ii) is consistent
5	with the terms of the agreement, if any, governing the payment or transfer; (2) the timing of the
6	filing of chapter 11 petitions for the Debtors, or any of them, and the decision with regard to
7	whether the Debtors, or any of them, should file chapter 11 petitions; (3) any borrowing,
8	financing or refinancing obtained by any of the Debtors, or which might have been obtained by
9	any of the Debtors but which was not so obtained at any time prior to the Petition Date; (4) the
10	creation by the Debtors of the LLC Entities and any transaction entered into by any of the
11	Debtors with any of the LLC Entities; (5) the sale by any of the Debtors of any real or personal
12	property, whether or not in the ordinary course of business, or the failure of any of the Debtors to
13	sell any such property, at any time prior to the Petition Date; and (6) any act, omission or
14	position taken following the Petition Date in connection with the Cases, provided that nothing in
15	this section 12.3 shall release any Debtors’ Releasees from any Liability (i) for breach of any
16	express obligation it has under the terms of the Plan or under any agreement or other document
17	entered into by such Debtors’ Releasee in accordance with the terms of the Plan, including,
18	without limitation, the Trust Agreement, or (ii) which arises from the willful misconduct or gross
19	negligence of such Debtors’ Releasee. All Liabilities so waived and released shall be waived
20	and released for all purposes. Notwithstanding the foregoing, nothing contained in this
21	section 12.3 shall impair the rights of the Debtors and the Trust from using the Debtors’ claims
22	against any of the Debtors’ Releases solely for defensive purposes in connection with objections
23	to any Claim of the Debtors’ Releasees.
24	12.4    Release of GE Capital and Injunction.
25	Effective as of the Effective Date and conditioned on GE Capital delivering to the
26	Debtors a release of the Lien on all Collateral held by GE Capital to secure all GE Capital
27	Claims, except to the extent GE Capital may retain a Lien of a specified portion of its Collateral
28	in accordance with section 4.1.1, then (i) the Debtors, on their own behalf and on behalf of their

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1	estates, assigns and successors-in-interest, including, without limitation, any trustee subsequently
2	appointed in the Cases or in any superseding chapter 7 case, and (ii) all Holders of Claims or
3	Interests, on their own behalf and on behalf of any assigns, successors-in-interest and
4	beneficiaries, waive and release GE Capital of any and all claims, demands, indebtedness,
5	agreements, promises, causes of action, obligations, counterclaims, defenses, damages,
6	recharacterization, Avoidance Action, or liabilities of any nature whatsoever, in law or in equity,
7	whether now known or unknown, suspected or asserted, accruing or arising prior to the Effective
8	Date, that is in any manner based upon, or connected to, the Debtors, the LLC Entities, or the
9	Cases, including the extension of financial accommodations by GE Capital to the Debtors and
10	the satisfaction of any associated liabilities in favor of GE Capital by the Debtors (collectively,
11	“GE Capital Liabilities” and the “GE Capital Release”), provided that nothing in this Release
12	shall diminish, alter or modify (x) the effectiveness of all Orders of this Court entered during the
13	Cases prior to the date of this Plan granting any release in favor of GE Capital or establishing a
14	bar date for the assertion of any claim against GE Capital, including, without limitation, the
15	“Order With Respect to (i) Consolidation Motion, (ii) LLC DIP Motion and (iii) Section 105(a)
16	Motion” entered by this Court on May 14, 2003, which established July 31, 2003 as the GE
17	Capital Bar Date (as defined therein), or (y) the effectiveness of contractual releases of GE
18	Capital or letters waiving claims or potential claims against GE Capital, including, without
19	limitation, those releases and waivers delivered in accordance with the Consolidation Stipulation.
20	The GE Capital Release is necessary and appropriate in the Plan, in order to relieve the Debtors
21	of any existing or potential future contingent Secured Claims which GE Capital would be
22	entitled to assert against the Debtors or the Trust, pursuant to the DIP Credit Agreement.
23	Therefore, Holders of Claims and Interests shall be bound by the GE Capital Release
24	notwithstanding that any such Holders may affirmatively state or indicate their unwillingness to
25	grant the GE Capital Release.
26	All Persons who have, assert or may have or assert any GE Capital Liabilities of
27	any nature whatsoever, against GE Capital, which are subject to the GE Capital Release set
28	forth above, and any successors, assigns or representatives of the foregoing, shall be precluded

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1	and permanently enjoined on and after the Effective Date from (a) commencing or continuing in
2	any manner any action, cause of action or other proceeding of any kind with respect to any GE
3	Capital Liability, and (b) the enforcement, attachment, collection or recovery by any manner or
4	means of any judgment, award, decree or order with respect to any GE Capital Liability.
5	Notwithstanding anything to the contrary contained herein, the terms of the
6	PBGC’s release of GE Capital shall be the same as those contained in that certain letter
7	agreement between the PBGC and GE Capital dated February 23, 2004, as if such terms were
8	fully set forth herein, and as if such letter agreement were executed and effective on the Effective
9	Date.
10	12.5    Debtors’ Releases Include Waiver of Unknown Claims.
11	To the extent any of the Debtors grant a release pursuant to the terms of this Plan,
12	such Debtors acknowledge that they are familiar with the provisions of section 1542 of the
13	California Civil Code, which provides as follows:
14	“A general release does not extend to claims which the creditor
	does not know or suspect to exist in his favor at the time of
15	executing the release, which if known by him must have materially
	affected his Stipulation by the debtor.”
16	similar statutes of other States or the United States, and common law principles of similar effect
17	as section 1542.
18	The Debtors, being aware of section 1542 and similar laws and common law
19	principles, hereby expressly waive any rights they may have thereunder, to the extent such
20	authorities may relate to any of the claims released pursuant to the sections 12.3 and 12.5 of the
21	Plan.
22	12.6    Limitation of Liability.
23	Except as expressly set forth in the Plan, following the Effective Date, none of the
24	Debtors, the Debtors-in-Possession, the Creditors Committee, the Trust, the Oversight
25	Committee or any of their respective members, officers, directors, employees, advisors,
26	attorneys, professionals or agents shall have or incur any liability to any Holder of a Claim or
27	Interest for any act or omission in connection with, related to, or arising out of, the Cases, the
28	pursuit of confirmation of the Plan, the consummation of the Plan or any agreement, contract,

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1	document, Instrument, release or other writing created in connection with the Plan, or the
2	administration of the Plan or the property to be distributed under the Plan, except for gross
3	negligence or willful misconduct by any such Person, provided that nothing in the section shall
4	limit the liability of any Person for breach of an express obligation it has under the terms of the
5	Plan or under any agreement or other writing entered into by such Person either subsequent to the
6	Petition Date or in accordance with the terms of the Plan or for any breach of a duty of care
7	owed to any other Person occurring after the Effective Date.
8	12.7    Good Faith.
9	Confirmation of the Plan shall constitute a finding that: (i) the Plan has been
10	proposed in good faith and in compliance with applicable provision of the Bankruptcy Code; and
11	(ii) the solicitation of acceptances or rejections of the Plan by all Persons and the offer, issuance,
12	sale, or purchase, of a security offered or sold under the Plan has been in good faith and in
13	compliance with applicable provisions of the Bankruptcy Code. Accordingly, on the Effective
14	Date, each of the Debtors and their officers and directors, the members of the Creditors
15	Committee, GE Capital, and each of their respective affiliates, advisors and attorneys, effective
16	as of the Effective Date, will be deemed exculpated by all Holders of Claims and Interests and
17	other parties in interest to these Cases, from any and all claims, causes of action, and other
18	assertions of liability (including, without limitation, breach of fiduciary duty), arising out of or
19	related to the Debtors, these Cases, or the exercise by such entities of their functions and duties
20	as members of or advisors to or attorneys for any such individuals, the Debtors, the Committee
21	or GE Capital or otherwise under applicable law, in connection with or related to these Cases and
22	the formulation, negotiation, preparation, dissemination, Confirmation and consummation of the
23	Plan and any agreement, Instrument, document or writing issued hereunder or related hereto.
24	This provision will have no effect on liability for any act or omission of the Debtors and their
25	officers and directors, the members of the Committee, GE Capital, and each of their respective
26	affiliates, advisors and attorneys to the extent that such act or omission is ultra vires or
27	constitutes gross negligence or willful misconduct.
28	12.8    Stays Remain in Effect.

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1	Except to the extent provided to the contrary in the Plan or the Confirmation
2	Order, all injunctions or stays entered in or related to the Cases pursuant to sections 105 or 362
3	of the Bankruptcy Code, or otherwise, and in existence on the Confirmation Date, shall remain in
4	full force and effect until the final Distribution is made and the Trust is terminated.
5	12.9    Injunctions.
6	Except to the extent provided to the contrary in the Plan or the Confirmation
7	Order, all Persons who have held, hold or may hold Claims whether or not released above, rights,
8	causes of action, or liabilities or any Interest based upon any act or omission, transaction or other
9	activity of any kind or nature that occurred prior to the Effective Date, regardless of the Filing,
10	lack of Filing, allowance or disallowance of such Claim or Interest and regardless of whether
11	such Person has voted to accept or reject the Plan, and any successors, assigns or representatives
12	of the foregoing, shall be precluded and permanently enjoined on and after the Effective Date
13	from (a) commencing or continuing in any manner any action, cause of action or other
14	proceeding of any kind with respect to any Claim, Interest or any other right or demand against
15	the Debtors, or any Assets of the Debtors, (b) the enforcement, attachment, collection or
16	recovery by any manner or means of any judgment, award, decree or Order with respect to any
17	Claim, Interest or any other right or Claim against the Debtors, or any Assets of the Debtors,
18	(c) creating, perfecting or enforcing any encumbrance of any kind with respect to any Claim,
19	Interest or any other right or demand against the Debtors, or any Assets of the Debtors, and
20	(d) except as set forth in section 9.20 above, asserting any right to subrogation, setoff or
21	recoupment of any kind with respect to any Claim, Interest or any other right or demand against
22	the Debtors, or any Assets of the Debtors; provided that, the foregoing injunction, insofar as it
23	relates to any action, cause of action or other proceeding against any of the Debtors, shall
24	terminate on the earlier to occur of (i) the dissolution of such Debtor and (ii) the closing of such
25	Debtor’s Case.
26	12.10    No Discharge.
27	Notwithstanding the foregoing, Confirmation will not discharge the Debtors from
28	any debt that arose before the date of Confirmation, and any debt of a kind specified in section

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1	502(g), 502(h) or 502(i) of the Bankruptcy Code.
2	12.11    Effect of Releases or Exculpation as to the Pension Fund.
3	No proceedings in the Debtors’ Cases, and no provisions of the Plan, the Trust
4	Agreement, or the Confirmation Order shall in any way be construed as discharging, releasing,
5	exculpating, limiting or relieving any party, other than the Debtors, the Trust, the LLC Entities
6	and, solely as provided in Section 12.4 of the Plan, GE Capital, in any capacity, from any
7	liability with respect to the Defined Benefit Pension Plan under any law, governmental policy or
8	regulation provisions, to the extent any claim or liability which the PBGC or the Defined Benefit
9	Pension Plan might assert (a) is a direct right of the PBGC or the Defined Benefit Pension Plan,
10	and not derivative of any claim or right of the Debtors which is being released pursuant to
11	section 12.3 of the Plan, and (b) is not a claim or liability from which any party is exculpated
12	pursuant to section 12.6 of the Plan, and the PBGC and the Defined Benefit Pension Plan shall
13	not be enjoined or precluded from enforcing any such liability as a result of any of the provisions
14	of the Plan or the Confirmation Order. Notwithstanding any other provision of this section
15	12.11, the PBGC’s sole and exclusive remedy for the enforcement of all of its rights and Claims
16	against the Debtors, the Consolidated Estate, the LLC Entities, and the Trust, and any of their
17	respective property, shall be for the PBGC to receive its pro rata Distribution on account of the
18	PBGC’s allowed Class 4 Claim in the amount of $120 million, and any payments made to it as a
19	creditor of the LLC Entities pursuant to the Consolidation Stipulation and Consolidation Order.
20	ARTICLE XIII
21	RETENTION OF JURISDICTION
22	Notwithstanding the entry of the Confirmation Order and the occurrence of the
23	Effective Date, the Court shall retain jurisdiction over the Cases and the Assets after the
24	Effective Date to the maximum extent legally permissible, including, without limitation,
25	retaining jurisdiction to:
26	(a)    Allow, disallow, determine, liquidate, classify, estimate or
27	establish the priority or secured or unsecured status of any Claim or Interest, including the
28

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1	resolution of any request for payment of any Administrative Claim and the resolution of any
2	and all objections to the allowance or priority of Claims, Interests and Administrative Claims;
3	(b)    Hear and determine any and all Causes of Action against any
4	Person and all rights of the Debtors that arose before or after the Petition Date, including without
5	limitation, Avoidance Actions and the enforcement of other rights and powers of a trustee and
6	debtor-in-possession, against any Person whatsoever;
7	(c)    Grant or deny any applications for Professional Claims or other
8	allowances of compensation or reimbursement of expenses for professionals authorized pursuant
9	to the Bankruptcy Code or the Plan, for periods ending on or before the Effective Date;
10	(d)    Resolve any matters relating to the assumption, assumption and
11	assignment or rejection of any executory contract or unexpired lease to which any Debtor is a
12	party or with respect to which any of the Debtors may be liable, including without limitation the
13	determination of whether such contract is executory for the purposes of section 365 of the
14	Bankruptcy Code, and hear, determine and, if necessary, liquidate any Claims arising therefrom;
15	(e)    Enter Orders approving the Debtors’ post-Confirmation sale or
16	other disposition of Assets under section 363 of the Bankruptcy Code, to the extent required by
17	the Plan or the Trust Agreement;
18	(f)    Ensure that payments and Distributions to Holders of Allowed
19	Claims are accomplished in accordance with the provisions of the Plan;
20	(g)    Decide or resolve any motions, adversary proceedings, contested
21	or litigated matters and any other matters and grant or deny any applications involving any
22	Debtor that may be pending in the Cases on the Effective Date;
23	(h)    Hear and determine matters concerning state, local or federal taxes
24	in accordance with sections 346, 505 or 1146 of the Bankruptcy Code;
25	(i)    Enter such Orders as may be necessary or appropriate to
26	implement or consummate the provisions of the Plan and the Confirmation Order;
27	(j)    Hear and determine any matters concerning the enforcement of the
28	provisions of the Plan and any other releases or injunctions contemplated by the Plan;

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1	(k)    Resolve any cases, controversies, suits or disputes that may arise in
2	connection with the consummation, interpretation or enforcement of the Plan or the
3	Confirmation Order;
4	(l)    Hear and determine any request of the Oversight Committee for
5	authority and approval to take any actions or enforce any remedies provided to the Oversight
6	Committee pursuant to any provision of the Plan or the Trust Agreement;
7	(m)    Resolve any cases, controversies, suits or disputes that may arise in
8	connection with the administration or operation of the Trust, including disputes between the
9	Trust or the Trustee and the Oversight Committee with respect to any matters under the Plan or
10	the Trust Agreement;
11	(n)    Hear and determine any cases, controversies, suits or disputes that
12	may arise in connection with the administration or operation of the Oversight Committee,
13	including the appointment of members of the Oversight Committee in the event that, at any time,
14	there are no active members of that committee;
15	(o)    Permit the Debtors, to the extent authorized pursuant to
16	section 1127 of the Bankruptcy Code, to modify the Plan or any agreement or document created
17	in connection with the Plan, or remedy any defect or omission or reconcile any inconsistency in
18	the Plan or any agreement or document created in connection with the Plan;
19	(p)    Issue injunctions, enter and implement other Orders or take such
20	other actions as may be necessary or appropriate to restrain interference by any entity with
21	consummation, implementation or enforcement of the Plan or the Confirmation Order;
22	(q)    Enforce any injunctions entered in connection with or relating to
23	the Plan or the Confirmation Order;
24	(r)    Enter and enforce such Orders as are necessary or appropriate if
25	the Confirmation Order is for any reason modified, stayed, reversed, revoked or vacated, or
26	Distributions pursuant to the Plan are enjoined or stayed;
27
28

76

1	(s)     Determine any other matters that may arise in connection with or
2	relating to the Plan, any agreement entered into in connection with the Confirmation or
3	implementation of the Plan, or the Confirmation Order;
4	(t)     Enter any Orders in aid of prior Orders of the Court; and
5	(u)     Enter an Order concluding the Cases.
6	ARTICLE XIV
7	ACCEPTANCE OR REJECTION OF THE PLAN
8	14.1    Persons Entitled to Vote.
9	Each Holder of an Allowed Claim in an impaired Class of Claims, other than
10	Holders of Claims in Classes deemed to reject the Plan, is entitled to vote to accept or reject the
11	Plan, as provided in such Order or Orders as the Court may enter to establish procedures for the
12	solicitation of votes to accept or reject the Plan. Holders of Claims in Classes 1, 2 and 3 are not
13	impaired and, pursuant to section 1126(f) of the Bankruptcy Code, are deemed to have accepted
14	the Plan. Holders of Claims in Classes 1, 2 and 3 will not be solicited to accept or reject the
15	Plan.
16	Holders of Claims in Classes 4, 5 and 6 are impaired and will be solicited to vote
17	to accept or reject the Plan.
18	Holders of Claims in Classes 7, 8 and 10, and Holders of Interests in Classes 11,
19	12, 13, 14, 15 and 16 will not receive any Cash or other property under to the Plan, and therefore
20	are deemed to reject the Plan. The Holders of Claims and Interests in such Classes will not be
21	solicited to vote to accept or reject the Plan pursuant to section 1126(g) of the Bankruptcy Code.
22	CF Bermuda, the Holder of Claims in Class 9, will either be unimpaired pursuant
23	to the Plan or will not receive any Cash or other property under the Plan, and therefore is deemed
24	to reject the Plan. In either case, such Holder will not be solicited to vote to accept or reject the
25	Plan.
26	14.2    Acceptance by Impaired Classes.
27	Holders of Claims will be permitted to vote to accept or reject the Plan by casting
28	a Ballot in the form distributed by the Debtors along with the Plan. An impaired Class of Claims

77

1	shall have accepted the Plan if (i) the Holders (other than any Holder designated under
2	section 1126(e) of the Bankruptcy Code) of at least two-thirds in amount of the Allowed Claims
3	actually voted in such Class vote to accept the Plan, and (ii) the Holders (other than any Holder
4	designated under section 1126(e) of the Bankruptcy Code) of at least one-half in number, of the
5	Allowed Claims actually voted in such Class, vote to accept the Plan.
6	Any Ballot which is returned to the Debtors in accordance with the procedures
7	established for voting to accept or reject the Plan which fails to designate if it is a vote to accept
8	or reject the Plan shall be treated as a vote to accept the Plan.
9	14.3    Request for Non-Consensual Confirmation.
10	The Debtors request that the Court confirm the Plan, as it may be modified from
11	time to time in accordance with its terms and the provisions of the Bankruptcy Code, under the
12	cramdown provisions of section 1129(b) of the Bankruptcy Code.
13	ARTICLE XV
14	MISCELLANEOUS PROVISIONS
15	15.1    Other Documents and Actions.
16	The Debtors, Creditors Committee, the Oversight Committee and the Trustee are
17	authorized to execute, deliver, file or record such documents and take such other actions as may
18	be necessary or appropriate to effectuate or further evidence the terms and conditions of the Plan
19	and the transactions provided for in the Plan.
20	15.2    No Further Corporate Action Required.
21	On the Effective Date, all matters provided for in the Plan which would otherwise
22	require approval of the shareholders, directors or members of one or more of the Debtors or any
23	successor under the Plan, including without limitation the transfer of the Assets of the Debtors as
24	of such date, shall be deemed to have occurred and to be in effect from and after the Effective
25	Date pursuant to the general corporate law applicable to the Debtors, without any requirement
26	of further action by the shareholders or directors of the Debtors.
27
28

78

1	15.3    Confirmation of All Cases.
2	It shall be a condition to Confirmation and the Plan shall not be deemed to have
3	been confirmed unless and until the Plan has been confirmed in each of the Cases.
4	15.4    Amendment or Modification of the Plan.
5	The Debtors may, with the consent of the Committee, propose amendments or
6	modifications to the Plan in writing at any time prior to the Confirmation Date, provided that the
7	Plan, as amended or modified, satisfies the conditions of sections 1122 and 1123 of the
8	Bankruptcy Code, and that the Debtors shall have complied with section 1125 of the Bankruptcy
9	Code with respect to the Plan as so amended or modified. The Plan may be amended or
10	modified at any time after the Confirmation Date and before substantial consummation with the
11	consent of the Committee or the Oversight Committee, as may be applicable, provided that the
12	Plan, as amended or modified, satisfies the requirements of sections 1122 and 1123 of the
13	Bankruptcy Code and the Court, after notice and a hearing, confirms the Plan, as amended or
14	modified, under section 1129 of the Bankruptcy Code and the circumstances warrant such
15	amendments or modifications. A Holder of a Claim that has accepted the Plan shall be deemed
16	to have accepted the Plan, as amended or modified, if the proposed amendment or modification
17	does not adversely change the treatment of the Claims of such Holder.
18	15.5    Revocation of the Plan.
19	The Debtors reserve the right to revoke or withdraw the Plan prior to the
20	Confirmation Date. If the Debtors revoke or withdraw the Plan, or if Confirmation does not
21	occur or if the Plan does not become effective, then the Plan shall be null and void, and nothing
22	contained in the Plan shall: (a) constitute a waiver or release of any Claims by or against, or any
23	Interests in, the Debtors; (b) constitute an admission of any fact or legal conclusion by the
24	Debtors or any other Person; or (c) prejudice in any manner the rights of the Debtors in any
25	further proceedings involving the Debtors. Upon the revocation or withdrawal of the Plan
26	pursuant to this section, the Debtors’ exclusive rights to file a plan and to seek acceptance
27	thereof under section 1121 of the Bankruptcy Code shall be deemed terminated with respect
28	to the Committee, but to no other party absent entry of an Order to that effect by the Court.

79

1	15.6    Extension of Deadlines in the Plan.
2	Any deadline for the Filing of any request for relief in the Plan, including, without
3	limitation, objections to Claims or requests for payment of Professional Claims, may be extended
4	by the Court upon a motion made to extend such deadline which is Filed prior to the deadline.
5	15.7    Governing Law.
6	Unless a rule of law or procedure is supplied by (i) federal law (including the
7	Bankruptcy Code and Bankruptcy Rules), (ii) an express choice of law provision in any
8	agreement, contract, Instrument or document provided for, or executed in connection with, the
9	Plan, or (iii) applicable non-bankruptcy law, the rights and obligations arising under the Plan and
10	any agreements, contracts, documents and instruments executed in connection with the Plan shall
11	be governed by, and construed and enforced in accordance with, the laws of the State of
12	California without giving effect to the principles of conflict of laws thereof.
13	15.8    No Admissions.
14	Nothing contained in the Plan shall be deemed as an admission by the Debtors
15	with respect to any matter set forth herein including, without limitation, liability on any Claim or
16	the propriety of any Claim classification.
17	15.9    No Liability for Solicitation or Participation.
18	As specified in section 1125(e) of the Bankruptcy Code, Persons that solicit
19	acceptances or rejections of the Plan in good faith and in compliance with the applicable
20	provisions of the Bankruptcy Code, shall not be liable on account of such solicitation or
21	participation, for violation of any applicable law, rule, or regulation governing the solicitation
22	of acceptances or rejections of the Plan or the offer, issuance, sale or purchase of securities.
23	15.10    Severability of Plan Provisions.
24	If, prior to Confirmation, any term or provision of the Plan that does not govern
25	the treatment of Claims or Interests is held by the Court to be invalid, void or unenforceable, the
26	Court, upon the request of the Debtors, shall have the power to alter and interpret such term or
27	provision to make it valid or enforceable to the maximum extent practicable, consistent with
28	the original purpose of the term or provision held to be invalid, void or unenforceable. Any such

80

1	term or provision shall then be applicable as altered or interpreted. Notwithstanding any such
2	holding, alteration or interpretation, the remainder of the terms and provisions of the Plan shall
3	remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.
4	The Confirmation Order shall constitute a judicial determination, and shall provide, that each
5	term and provision of the Plan, as it may have been altered or interpreted in accordance with this
6	section, is valid and enforceable pursuant to its terms.
7	15.11    Post-Effective Date Professional Services.
8	From and after the Effective Date, the Debtors, the Trust and the Oversight
9	Committee shall be authorized to employ and compensate counsel and other professionals,
10	including the Disbursing Agent, in accordance with the terms of the Plan and the Trust
11	Agreement, and without an Order of the Court approving such retention or compensation, unless
12	the Trust and the Oversight Committee disagree with respect to the amount, compensability or
13	other details of any retention or request for compensation or reimbursement of expenses of such
14	professionals, in which case, the Court shall have jurisdiction to resolve such dispute.
15	15.12    Exemption from Certain Transfer Taxes.
16	Pursuant to section 1146(c) of Bankruptcy Code, the issuance, transfer or
17	exchange of any security or the making or delivery of any Instrument of transfer under the Plan
18	may not be taxed under any law imposing a stamp tax, use tax, sales tax or similar tax. Any sale
19	of any Asset occurring before, after or upon the Effective Date shall be deemed to be in
20	furtherance of the Plan.
21	15.13    Section 1145 Exemption.
22	To the fullest extent permitted under section 1145 of the Bankruptcy Code, the
23	issuance of Trust Beneficial Interests shall be exempt from the registration requirements of
24	section 5 of the Securities Act of 1933, as amended, and any and all federal, state and local laws
25	requiring the registration or licensing of an issuer, underwriter, broker or dealer in such
26	securities.
27
28

81

1	15.14    No Impact on Contractually Subordinated Claims.
2	The Plan does not affect the rights and obligations of any Creditor which holds an
3	Unsecured Claim which is the subject of a contractual subordination agreement in accordance
4	with section 510(a) of the Bankruptcy Code, except with respect to Claims defined as
5	Subordinated Claims under the Plan. Distributions or payments with respect to Claims which are
6	subject to such contractual subordination agreements shall be payable in accordance with such
7	subordination agreements, to the extent the subordination agreements are enforceable under
8	non-bankruptcy law.
9	15.15    Saturday, Sunday or Legal Holiday.
10	If any payment or act under the Plan is required to be made or performed on a
11	date that is not a Business Day, then the making of such payment or the performance of such act
12	may be completed on the next succeeding Business Day, but shall be deemed to have been
13	completed as of the required date.
14	15.16    Payment of Statutory Fees.
15	All fees due and payable pursuant to section 1930 of title 28 of the United States
16	Code, including, without limitation, any United States Trustee quarterly fees incurred pursuant to
17	section 1930(a)(6) of title 28 of the United States Code, as determined by the Court at the
18	Confirmation Hearing, shall be paid on the Effective Date, or as soon as reasonably possible
19	thereafter. Any and all such fees due and payable after the Effective Date shall be the sole and
20	exclusive liability of the Trust. After Confirmation, the Trust shall file with the Court and serve
21	on the U.S. Trustee a quarterly financial report regarding all income and disbursements,
22	including all Plan payments, for each quarter (or portion thereof) any of the Cases remain open.
23	15.17    Exhibits.
24	All exhibits to the Plan which are included in any Appendix are incorporated into
25	and constitute a part of the Plan as if set forth herein in full.
26	Any exhibits to the Plan which are voluminous may not be served with copies of
27	the Plan. Any party in interest may obtain a copy of such excluded Exhibits by transmitting a
28	written request for same to:

82

1	Colleen Greenwood
	Latham & Watkins LLP
2	633 West Fifth Street, Suite 4000
	Los Angeles, California 90071
3	Fax No. (213) 891-8763
4	15.18   Waiver of Federal Rule of Civil Procedure 62(a).
5	The Debtors intend to request that the Confirmation Order include (a) a finding
6	that Bankruptcy Rule 7062 and Federal Rule of Civil Procedure 62(a) shall not apply to the
7	Confirmation Order, and (b) authorization for the Debtors to consummate the Plan immediately
8	after entry of the Confirmation Order.
9	15.19   Binding Effect.
10	The Plan shall be binding upon and inure to the benefit of the Debtors, the
11	Holders of Claims or Interests affected by the Plan, and any other Person named or referred to in
12	the Plan, and their respective successors and assigns, including, without limitation, the Trust and
13	the Trustee and any trustee subsequently appointed in any of the Cases or in any superseding
14	chapter 7 case.
15	15.20   Standing of Committee and Oversight Committee.
16	The Committee, without any further Order of the Court, shall have standing and
17	be authorized to appear as a party in connection with any proceeding in the Court and any appeal
18	from any Order of the Court until the Effective Date and, thereafter, the Oversight Committee
19	shall have such standing and authority. The Oversight Committee shall also have standing and
20	authority to initiate and prosecute, on behalf of the Trust, any claim, cause of action, lawsuit or
21	proceeding which the Oversight Committee is permitted to prosecute pursuant to the Trust
22	Agreement.
23	15.21   Headings.
24	The headings used in the Plan are inserted for convenience only of reference only
25	and shall not be part of nor affect interpretations of the Plan, or in any manner affect the
26	provisions of the Plan.
27	15.22   Consolidation Stipulation and Other Agreements.
28

83

1	Except as expressly set forth in the Confirmation Order, nothing in the Plan shall
2	modify, alter or amend the Consolidation Stipulation, the Consolidation Order, the Stipulation
3	Between CNF Inc. and Its Affiliates and Debtors with Respect to Canadian Sale Proceeds
4	Distribution, filed on February 23, 2004 (the “CNF Stipulation”), or that certain Reimbursement
5	Agreement between Bank of America, N.A. and CFCD (the Reimbursement Agreement). From
6	and after the Effective Date, the Trust shall be deemed to have assumed the Debtors’ obligations
7	under the Consolidation Stipulation, the CNF Stipulation and the Reimbursement Agreement,
8	and shall be bound by the terms thereof.
9	Dated:  August 23, 2004
		CONSOLIDATED FREIGHTWAYS
10		CORPORATION OF DELAWARE
11
		By:  /s/ John P. Brincko
12
13		Name:	John P. Brincko
14		Title:	Chief Executive Officer
15
16	Dated: August 23, 2004
17		CONSOLIDATED FREIGHTWAYS CORPORATION
18
		By:  /s/ John P. Brincko
19
20		Name:	John P. Brincko
21		Title:	Chief Executive Officer
22
23	Dated: August 23, 2004
		CONSOLIDATED FREIGHTWAYS
24		AIRFREIGHT CORPORATION
25
		By:  /s/ John P. Brincko
26
27		Name:	John P. Brincko
28		Title:	Chief Executive Officer

84

1
2	Dated:  August 23, 2004
		CFMOVESU.COM INCORPORATED
3
4		By:  /s/John P. Brincko
5		Name:	John P. Brincko
6		Title:	Chief Executive Officer
7
	Dated: August 23, 2004
8		LELAND JAMES SERVICE CORPORATION
9		By:  /s/ John P. Brincko
10
11		Name:	John P. Brincko
12		Title:	Chief Executive Officer
13
14	Dated: August 23, 2004
15		REDWOOD SYSTEMS, INC.
16		By:  /s/ John P. Brincko
17
18		Name:	John P. Brincko
19		Title:	Chief Executive Officer
	Submitted by:
22		LATHAM & WATKINS LLP
23		Michael S. Lurey             Gregory O. Lunt
24
25		By:  /s/ Gregory O. Lunt
26		Gregory O. Lunt
27		Counsel for Consolidated Freightways Corporation of Delaware, et al., Debtors and Debtors-in-Possession
28

85

1	LIST OF CANADA AFFILIATES
2	CF Holding Ltd.
3	Canadian Freightways Limited
4	Blackfoot Logistics, Inc.
5	United Terminals Ltd. (50% CFCD & 50% CFL)
6	Transport CFQI, Inc. (Epic Express)
7	Click Express, Inc.
8	724567 Alberta, Ltd.
9	724569 Alberta Ltd. (Evergreen Logistics)
10	865097 Alberta Ltd. (inactive, no assets)
11	Panorama Mainland
12	Canadian Freightways Eastern Limited
13	Milne & Craighead, Inc. (90% CFEL & 10% CFL)
14	Interport Sufferance Warehouse Limited
15
16
17
18
19
20
21
22
23
24
25
26	EXHIBIT “A”
27
28

86

1	LIST OF MEXICO AFFILIATES
2	CF Grupo S. A. de RL
3	CF S.A. de CV
4	CF Mexico S.A. de CV
5	CF Mexico Immobiliaria
6	Redwood Systems, Inc.
7	Redwood Systems Services S.A. de C. V.
8	Redwood Systems Logistics S.A. de C. V.
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26	EXHIBIT “B”
27
28

87

EX-99.1

Exhibit 99.1

1	LATHAM & WATKINS LLP
	Michael S. Lurey, CA State Bar No. 048235
2	Gregory O. Lunt, CA State Bar No. 173297
	633 West Fifth Street, Suite 4000
3	Los Angeles, California 90071-2007
	Telephone: (213) 485-1234
4	Facsimile: (213) 891-8763

5
	Counsel for Consolidated Freightways Corporation
6	of Delaware, et al., Debtors and Debtors-in-Possession

7
8	UNITED STATES BANKRUPTCY COURT
9	CENTRAL DISTRICT OF CALIFORNIA
10	RIVERSIDE DIVISION

11	In re	Case No.: RS 02-24284 MG
12	CONSOLIDATED FREIGHTWAYS	Chapter 11
	CORPORATION OF DELAWARE, et al.,
13	Debtors.	(Jointly Administered with Case Nos.
14		RS-02-24289-MG; RS-02-24287-MG;
		RS-02-24293-MG; RS-02-24294-MG;
15	Fed Tax I.D. No. 94-1444797	and RS-02-24295-MG
16		ORDER CONFIRMING DEBTORS’
		CONSOLIDATED PLAN OF
17		LIQUIDATION DATED JULY 1, 2004
		(AS AMENDED)
18
		Confirmation Hearing
19		Date:	October 20, 2004
		Time:	2:00 p.m.
20		Place:	Courtroom 301
			3420 Twelfth Street
21			Riverside, California 92501
22		Judge:	Hon. Mitchel R. Goldberg

23	At a hearing (the “Confirmation Hearing”) held on October 20, 2004, at 2:00
24	p.m., in the Courtroom of the undersigned United States Bankruptcy Judge, this Court
25	considered (i) the Consolidated Plan of Liquidation Dated July 1, 2004 (as Amended) (the
26	“Plan”), filed by Consolidated Freightways Corporation of Delaware (“CFCD”), Consolidated
27	Freightways Corporation (“CFC”), Redwood Systems, Inc., Leland James Service Corporation,
28	CF Airfreight Corporation and CF MovesU.com Incorporated (collectively, the “Debtors,” and

1	each a “Debtor”), (ii) the modifications to the Plan put on the record at the Confirmation
2	Hearing, (iii) the documents, evidence and matters listed in the Findings of Fact and Conclusions
3	of Law re: Order Confirming Debtors’ Consolidated Plan of Liquidation Dated July 1, 2004 (as
4	Amended), entered by this Court concurrently herewith (the “Findings and Conclusions”), (iv)
5	the declarations and other evidence submitted in support of the Plan, (v) the objections and
6	responses filed to the Plan as set forth on the docket of these cases, and (vi) the arguments and
7	evidence proffered at the Confirmation Hearing. Capitalized terms not defined herein shall have
8	the meanings ascribed to them in the Amended Plan (as defined below). Appearances were
9	made at the Confirmation Hearing as noted on the record of the Confirmation Hearing. Based on
10	the record in these cases, the Findings and Conclusions entered contemporaneously herewith,
11	and good cause and adequate notice appearing therefor,
12	IT IS HEREBY ORDERED THAT:
13	A. The Plan, as modified herein and attached hereto as Exhibit “A” (the
14	“Amended Plan”), is CONFIRMED and approved in its entirety; to the extent there exists any
15	conflict or discrepancy between the Amended Plan and this Confirmation Order, this
16	Confirmation Order shall control. The Debtors are hereby authorized to take all steps and do all
17	things necessary to implement the Amended Plan.
18	B. The failure to reference or discuss any particular provision of the
19	Amended Plan in this Confirmation Order shall have no effect on this Court’s approval and
20	authorization of, or the validity, binding effect, and enforceability of, such provision; and each
21	provision of the Amended Plan is authorized and approved and shall have the same validity,
22	binding effect, and enforceability as every other provision of the Amended Plan, whether or not
23	mentioned in this Confirmation Order.
24	C. All objections to confirmation of the Amended Plan that were not
25	withdrawn or otherwise resolved in the manner stated on the record of the Confirmation Hearing
26	or in papers filed with the Court prior to the Confirmation Hearing are overruled.
27	D. The Plan is hereby deemed modified pursuant to Section 1127(a) of the
28	Bankruptcy Code and Section 15.4 of the Plan to reflect the following:

2

1	1. Section 1.2.89 of the Plan is modified by deleting the period at the end
2	thereof and inserting the following in lieu thereof: “; provided that, in determining the amount of
3	Allowed Priority Non-Tax Claims under section 507(a)(4) of Bankruptcy Code, the Debtors shall
4	prorate such Claims to the extent required by law in the event that the aggregate amount of such
5	Claims exceeds the cap set forth in section 507(a)(4)(B) of the Bankruptcy Code.”
6	2. Section 3.3 of the Plan is deleted in its entirety and the following is
7	inserted in lieu thereof:
8	3.3    Priority Tax Claims.
9	With respect to each Allowed Priority Tax Claim, at the sole option of the
10	Debtors or the Trustee, as applicable, the Trust shall pay to each Holder of an Allowed
11	Priority Tax Claim on account of such Allowed Priority Tax Claim, in full satisfaction,
12	settlement, release and discharge of such Allowed Priority Tax Claim, (a) in accordance
13	with Bankruptcy Code section 1129(a)(9)(C), equal Cash payments made on the last
14	Business Day of every three-month period following the Effective Date, over a period not
15	exceeding six years after the assessment of the tax on which such Claim is based, totaling
16	the principal amount of such Claim, (b) such other treatment agreed to by the Holder of
17	such Allowed Priority Tax Claim and the Debtors in writing prior to Confirmation,
18	provided such treatment is no less favorable to the Debtors than the treatment set forth in
19	clause (a) hereof, or (c) payment in full on or as soon as practicable after the Effective
20	Date, provided that alternative (a) under this section shall not be used by the Debtors or
21	the Trustee without the prior consent of the Committee or the Oversight Committee, as
22	applicable. Interest on Allowed Priority Tax Claims will accrue, and be payable, as
23	follows: (i) the Debtors shall not be required to pay post-petition interest on any Allowed
24	Priority Tax Claim (or any portion thereof) that is paid on the Effective Date or within
25	thirty (30) days thereafter; (ii) except for any Allowed Priority Tax Claim (or any portion
26	thereof) paid pursuant to subsection (i) above, the Debtors shall pay interest at the Prime
27	Rate (as defined below) on any unpaid Priority Tax Claim (or any unpaid portion thereof)
28	to the extent it becomes an Allowed Priority Tax Claim, during the period from the

3

1	Effective Date through the earlier to occur of payment of such Allowed Priority Tax
2	Claim (or portion thereof) or the first Business Day that is at least one (1) year after the
3	Effective Date (the “First Anniversary Date”) and (iii) for any Allowed Priority Tax
4	Claim (or any portion thereof) that is not paid on or before the First Anniversary Date,
5	the Debtors shall be required to pay, in addition to the accrued interest described in
6	subsection (ii) above, interest (from and after the First Anniversary Date) at a rate equal
7	to the Prime Rate plus one percent (1%) until such Allowed Priority Tax Claim (or
8	portion thereof) is paid in full in accordance with this section 3.3. As used in this section
9	3.3, the term “Prime Rate” means an adjustable rate of interest equal to the prime rate as
10	announced in The Wall Street Journal (National Edition) on the Effective Date as
11	adjusted thereafter on a monthly basis on the first Business Day of each calendar month
12	after the Effective Date, as announced in The Wall Street Journal (National Edition). The
13	Trust shall have the right to pay any Allowed Priority Tax Claim, or any remaining
14	balance of such Claim, in full, at any time on or after the Effective Date, without
15	premium or penalty of any kind (other than accrued interest calculated in accordance with
16	this section 3.3).
17	3. Subsection (9) of Section 7.4 of the Plan is modified by inserting the
18	following immediately after the semicolon at the end thereof: “provided that, in the event that
19	the annual premiums for insurance or bonds to insure the Trustee or the Oversight Committee
20	and its members exceed $250,000 in the aggregate, Court approval shall be required after notice
21	to the Office of the United States Trustee, Crown Enterprises, Inc., Atlas Oil Holdings, Co., the
22	Pension Benefit Guaranty Corporation, the Debtors and any other person that specifically
23	requests notice of post-Effective Date matters brought before the Court;”.
24	4. Subsection (11) of Section 7.4 of the Plan is modified by deleting the
25	period at the end thereof and inserting the following in lieu thereof: “; provided further that,
26	notwithstanding the foregoing, the Trustee must disclose to the Court, in advance, with notice to
27	the Office of the United States Trustee, Crown Enterprises, Inc., Atlas Oil Holdings, Co., the
28	Pension Benefit Guaranty Corporation, the Debtors and any other person that specifically

4

1	requests notice of post-Effective Date matters brought before the Court, the identity of any
2	insider (as such term is defined in Section 101(31) of the Bankruptcy Code) of the Trustee or any
3	member of the Oversight Committee that the Trustee intends to employ at the expense of the
4	Trust;”.
5	5. Section 8.4 of the Plan is modified by deleting the period in the second
6	sentence and inserting the following in lieu thereof: “; provided that, notwithstanding the
7	foregoing, the Oversight Committee must disclose to the Court, in advance, with notice to the
8	Office of the United States Trustee, Crown Enterprises, Inc., Atlas Oil Holdings, Co., the
9	Pension Benefit Guaranty Corporation, the Debtors and any other person that specifically
10	requests notice of post-Effective Date matters brought before the Court, the identity of any
11	insider (as such term is defined in section 101(31) of the Bankruptcy Code) of the Trustee or any
12	member of the Oversight Committee that the Oversight Committee intends to employ at the
13	expense of the Trust.”
14	6. Section 9.20 of the Plan is deleted in its entirety and the following is
15	inserted in lieu thereof:
16	9.20 Setoff and Recoupment
17	Nothing in the Plan shall impair the right of any Person, including the Debtors, to
18	set off any obligation which it has against any mutual obligation of another party in
19	accordance with applicable non-bankruptcy law or to assert a right of recoupment in
20	accordance with otherwise applicable non-bankruptcy law. Subject to the preceding
21	sentence, the Trust may, but shall not be required to, set off claims of any nature that the
22	Debtor or the Trust may have against the Holder of any Allowed Claim, whether or not
23	the Debtor’s or the Trust’s claim is released pursuant to the Plan, against any Allowed
24	Claim of such Holder, and against the Distributions to be made by the Trust pursuant to
25	the Plan on account of such Allowed Claim, provided, however, that neither the failure to
26	effect such a setoff, nor the allowance of any Claim against the Debtor or Trust, shall
27	constitute a waiver or release by the Debtor or the Trust of any claim that the Debtor or
28	the Trust may possess against such Holder. Any Creditor that receives a distribution(s)

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1	under this Plan and thereafter seeks to exercise a valid right of setoff or recoupment with
2	respect to the unpaid portion of its Allowed Unsecured Claim shall, as a condition to the
3	exercise of such right, return to the Trust an amount, if any, equal to the difference
4	between the amount of the distribution(s) received by such Creditor under the Plan and
5	the amount of the distribution(s) such Creditor would have received had the setoff or
6	recoupment occurred as of the Effective Date. Thus, for example, if a Creditor has an
7	Allowed Unsecured Claim in the amount of $1,000,000 and the distribution to Holders of
8	Allowed Class 4 Claims equals $.15 for every $1 of Allowed Unsecured Claim under the
9	Plan, the Creditor would receive $150,000 in Distributions under the Plan. If the Trustee
10	thereafter asserts an action against the Creditor seeking $800,000 in damages, assuming
11	that (a) the Creditor could exercise the right of setoff with respect to this liability under
12	applicable non-bankruptcy law and (b) the setoff had occurred as of the Effective Date
13	(before any Distributions under the Plan had occurred), the Creditor’s Unsecured Claim
14	would have been Allowed in the amount of $200,000 ($1,000,000 less the $800,000
15	setoff), for which it would have received Distributions totaling $30,000 in the aggregate.
16	Thus, in order for the Creditor to exercise its right of setoff in this instance, it would be
17	required to pay to the Trust $120,000, which equals the difference between the $150,000
18	in actual Distributions that such Creditor received under the Plan and the $30,000 in
19	Distributions that it would have received under the Plan had the setoff been exercised on
20	or before the Effective Date.
21	7. Section 12.9 of the Plan is modified by inserting the following phrase at
22	the start of subsection (d) thereof: “except as set forth in section 9.20 above,”.
23	8. The first sentence of Section 12.11 of the Plan is modified by deleting the
24	word “and” immediately after the words “other than the Debtors, the Trust” and inserting a
25	comma in lieu thereof, and adding the following immediately after the words “the LLC Entities”:
26	“and, solely as provided in Section 12.4 of the Plan, GE Capital”;
27	9. The following is added as a new Section 15.22 to the Plan:
28	15.22    Consolidation Stipulation and Other Agreements

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1	Except as expressly set forth in the Confirmation Order, nothing in the Plan shall
2	modify, alter or amend the Consolidation Stipulation, the Consolidation Order, the
3	Stipulation Between CNF Inc. and Its Affiliates and Debtors with Respect to Canadian
4	Sale Proceeds Distribution, filed on February 23, 2004 (the “CNF Stipulation”), or that
5	certain Reimbursement Agreement between Bank of America, N.A. and CFCD (the
6	Reimbursement Agreement). From and after the Effective Date, the Trust shall be
7	deemed to have assumed the Debtors’ obligations under the Consolidation Stipulation,
8	the CNF Stipulation and the Reimbursement Agreement, and shall be bound by the terms
9	thereof.
10	E. Binding Effect. Pursuant to Section 1141 of the Bankruptcy Code, and
11	except as expressly provided in the Amended Plan or this Confirmation Order, the provisions of
12	the Amended Plan (including the exhibits to, and all documents and agreements executed
13	pursuant to, the Amended Plan) and this Confirmation Order shall be binding on (i) the Debtors,
14	(ii) the Trustee, (iii) the Oversight Committee, (iv) all holders of Claims against and Interests in
15	the Debtors, whether or not impaired under the Amended Plan and whether or not, if impaired,
16	such holder accepted the Amended Plan, and (v) each person acquiring property under the
17	Amended Plan.
18	F. Contracts and Leases. On the Effective Date, all executory contracts and
19	unexpired leases of the Consolidated Estate shall be rejected by the Debtors pursuant to the
20	provisions of Sections 365 and 1123 of the Bankruptcy Code, except for those executory
21	contracts and unexpired leases that (i) have already been assumed or rejected pursuant to an
22	earlier Order of the Court, (ii) are to be assumed and assigned to the Trust pursuant to the
23	Amended Plan, or (iii) are the subject of a motion for such an Order pending as of the Effective
24	Date. All Assumed Executory Contracts set forth on Exhibit “B” hereto shall be deemed
25	assumed and assigned to the Trust as of the Effective Date.
26	G. General Authorizations. Pursuant to Section 1142(b) of the Bankruptcy
27	Code, the Debtors, the Trustee, the Oversight Committee and all other necessary parties are
28	authorized and empowered to (a) execute and deliver any instrument, agreement or document,

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1	(b) perform any act that is necessary, desirable or required to effectuate or comply with the terms
2	and conditions of the Amended Plan and consummate the Amended Plan and the transactions
3	contemplated therein, and are authorized and empowered, without limitation, to take all actions
4	necessary or appropriate to enter into, implement, and consummate the contracts, instruments
5	and other agreements or documents created in connection with the Amended Plan, and (c) take
6	any and all actions that deem to be necessary, appropriate or desirable to effectuate the
7	provisions of Section 6.11 of the Amended Plan.
8	H. Trust Agreement. The Trust Agreement shall be, and hereby is, approved
9	in all respects, and the Debtors, the Committee, the Trustee and the Oversight Committee are
10	hereby authorized to enter into, and perform their respective obligations under, the Trust
11	Agreement in substantially the form attached as Exhibit K to the Disclosure Statement with such
12	non-material modifications, changes and amendments to which they shall reasonably agree or
13	which might reasonably be required or desirable to conform the Trust Agreement to the
14	provisions of this Order.
15	I. Post-Petition Agreements. The Debtors shall be deemed to have assigned
16	to the Trustee all of the agreements, contracts and leases set forth on Exhibit “C” hereto
17	(collectively, the “Post-Petition Agreements”) effective as of the Effective Date or such other
18	date as may be agreed to between the Debtors and the applicable non-debtor party thereto, and,
19	from and after such time, the Trust shall be deemed to have assumed the Debtors’ obligations
20	thereunder and be bound thereby. The Trustee is authorized and directed to perform under the
21	Post-Petition Agreements according to their terms and to enter into such agreements, documents,
22	acknowledgements and instruments as may be reasonably requested by any of the non-Debtor
23	parties to the Post-Petition Agreements in order to implement or evidence the provisions of this
24	section.
25	J. Authorizations Under Applicable Non-Bankruptcy Law. The Debtors and
26	the Trustee are authorized and empowered pursuant to Section 105 of the Bankruptcy Code to
27	take any and all actions reasonably necessary to implement the transactions contemplated by the
28

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1	Amended Plan and this Confirmation Order, all without further corporate action or action of the
2	directors or stockholders of the Debtors.
3	K. Exemption from Transfer Taxes. Pursuant to Section 1146(c) of the
4	Bankruptcy Code, the issuance, transfer or exchange of any security or the making or delivery of
5	any Instrument of transfer under the Amended Plan may not be taxed under any law imposing a
6	stamp tax, use tax, sales tax or similar tax. Any sale of any Asset occurring before, after or upon
7	the Effective Date shall be deemed to be in furtherance of the Amended Plan.
8	L. Professional Compensation and Reimbursement Claims. All professionals
9	or other Persons requesting compensation or reimbursement of expenses pursuant to any of
10	Sections 327, 328, 330, 331, 503(b) and 1103 of the Bankruptcy Code for services rendered on
11	or before the Effective Date (including, inter alia, any compensation requested by any
12	professional or any other Person for making a substantial contribution in the Cases) shall File
13	and serve on the Debtors and the Trustee an application for final allowance of compensation and
14	reimbursement of expenses no later than (i) sixty (60) days after the Effective Date (or, if such
15	day is not a Business Day, the first Business Day after such day), or (ii) such later date as this
16	Court shall order upon application made prior to the end of such 60-day period. Objections to
17	applications of professionals or other Persons for compensation or reimbursement of expenses
18	must be Filed and served on the Debtors, the Trustee, the Oversight Committee, and the
19	professionals to whose application the objections are addressed, on or before (i) thirty (30) days
20	after such application is Filed and served or (ii) such later date as the Court shall order upon
21	application made prior to the end of such 30-day period or upon agreement between the Trustee
22	and the affected professional. Any professional fees and reimbursements of expenses incurred
23	by the Debtors, the Trustee and the Oversight Committee subsequent to the Effective Date may
24	be paid by the Debtors and the Trustee, as applicable, without application to or Order of the
25	Court.
26	M. Payment of U.S. Trustee Fees. All fees payable by the Debtors on or
27	before the Effective Date pursuant to 28 U.S.C. § 1930 shall be paid by the Debtors on or before
28

9

1	the Effective Date. The Trust shall be liable for all fees payable under 28 U.S.C. § 1930 from
2	and after the Effective Date.
3	N. Amendments and Supplements to the Amended Plan. Any duly
4	authorized amendments and supplements to the Amended Plan are hereby approved.
5	O. Settlements. The agreements, settlements, transactions and transfers
6	implemented through the Amended Plan are fair, equitable and reasonable, are entered into in
7	good faith, are in the best interests of the Debtors, the Consolidated Estate, the creditors and their
8	shareholders, and help provide adequate means for implementing the Amended Plan.
9	P. Post-Confirmation Notices. Except as otherwise provided in the Amended
10	Plan and this Confirmation Order, notice of all subsequent pleadings in these Chapter 11 Cases
11	shall be limited to counsel for the Debtors, counsel for the Trustee, counsel to the Oversight
12	Committee, the United States Trustee and any other person that specifically requests notice of
13	post-Effective Date matters brought before the Court, unless otherwise specified in an Order by
14	this Court.
15	Q. Injunction. Except to the extent provided to the contrary in the Amended
16	Plan (including, without limitation, section 9.20 thereof) or herein, all Persons who have held,
17	hold or may hold Claims whether or not released above, rights, causes of action, or liabilities or
18	any Interest based upon any act or omission, transaction or other activity of any kind or nature
19	that occurred prior to the Effective Date, regardless of the Filing, lack of Filing, allowance or
20	disallowance of such Claim or Interest and regardless of whether such Person has voted to accept
21	or reject the Plan, and any successors, assigns or representatives of the foregoing, shall be
22	precluded and permanently enjoined on and after the Effective Date from (a) commencing or
23	continuing in any manner any action, cause of action or other proceeding of any kind with
24	respect to any Claim, Interest or any other right or demand against the Debtors, or any Assets of
25	the Debtors, (b) the enforcement, attachment, collection or recovery by any manner or means of
26	any judgment, award, decree or Order with respect to any Claim, Interest or any other right or
27	Claim against the Debtors, or any Assets of the Debtors, (c) creating, perfecting or enforcing any
28	encumbrance of any kind with respect to any Claim, Interest or any other right or demand against

10

1	the Debtors, or any Assets of the Debtors, and (d) asserting any right to subrogation, setoff or
2	recoupment of any kind with respect to any Claim, Interest or any other right or demand against
3	the Debtors, or any Assets of the Debtors; provided that, the foregoing injunction, insofar as it
4	relates to any action, cause of action or other proceeding against any of the Debtors, shall
5	terminate on the earlier to occur of (i) the dissolution of such Debtor and (ii) the closing of such
6	Debtor’s Case.
7	R. Applicable Non-Bankruptcy Law. Pursuant to Sections 1123(a) and
8	1142(a) of the Bankruptcy Code, the provisions of this Confirmation Order, the Amended Plan,
9	and any amendments or modifications thereto shall apply and be enforceable notwithstanding
10	any otherwise applicable nonbankruptcy law.
11	S. Semi-Annual Reports. On a semiannual basis, the Trust shall prepare a
12	status report setting forth, among other things, a brief description of the status of implementation
13	of the Plan, a summary of any distributions made by the Trust since, as applicable, the Effective
14	Date or the previous status report, a description of the expenses and costs paid by the Trust since,
15	as applicable, the Effective Date or the previous status report, a summary of the Trust’s assets,
16	including, without limitation, reserves, and an estimate as to when the Cases will be closed. The
17	Trust shall file two (2) copies of each status report with the Court and serve each report on the
18	United States Trustee, the Oversight Committee and any other person that specifically requests
19	notice of post-Effective Date matters brought before the Court.
20	T. Modified Stay of Confirmation Order. Pursuant to Bankruptcy Rule
21	3020(e), this Confirmation Order shall be stayed for ten (10) days after its entry (the “Stay
22	Period”). However, the provisions of Federal Rule of Civil Procedure 62(a) and Bankruptcy
23	Rule 7062 shall not apply to this Confirmation Order, and the Debtors are authorized to
24	consummate the Amended Plan immediately following the Stay Period.
25	Dated: November 18, 2004
26
27	/s/ Mitchel R. Goldberg     The Honorable Mitchel R. Goldberg     United States Bankruptcy Judge
28

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1	Submitted by:
2	LATHAM & WATKINS LLP
3	By: /s/ Gregory O. Lunt
4	Gregory O. Lunt Counsel for Debtors and Debtors-in-Possession
5
6	Approved as to Form and Content:
7	STUTMAN TREISTER & GLATT, P.C.
8
9	By /s/ Gary Klausner
10	Gary Klausner Counsel for the Official Committee of Creditors Holding Unsecured Claims
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EX-99.2

Exhibit 99.2

LATHAM & WATKINS LLP

    Michael S. Lurey, CA State Bar No. 048235

    Gregory O. Lunt, CA State Bar No. 173297

633 West Fifth Street, Suite 4000

Los Angeles, California 90071-2007

Telephone: (213) 485-1234

Facsimile: (213) 891-8763

Counsel for Consolidated Freightways Corporation of

Delaware, et al., Debtors, and Counsel for K. Morgan

Enterprises, Inc. as Trustee for The Trust for Certain

Creditors of Consolidated Freightways Corporation and

Certain Affiliates

UNITED STATES BANKRUPTCY COURT

CENTRAL DISTRICT OF CALIFORNIA

RIVERSIDE DIVISION

In re	Case No.: RS 02-24284 MG
CONSOLIDATED FREIGHTWAYS CORPORATION OF DELAWARE, et al.	Chapter 11
Debtors.	(Substantively Consolidated with Case Nos. RS-02-24289-MG; RS-02-24287-MG; RS-02-24293-MG; RS-02-24294-MG; and
Fed. Tax I.D. No. 94-1444797	RS-02-24295-MG)
	Judge: Hon. Mitchel R. Goldberg

NOTICE OF CONFIRMATION AND EFFECTIVE DATE OF DEBTORS’

CONSOLIDATED PLAN OF LIQUIDATION DATED JULY 1, 2004 (AS AMENDED)

PLEASE TAKE NOTICE THAT on November 22, 2004, the United States Bankruptcy Court for the Central District of California, Riverside Division, entered its Order Confirming Debtors’ Consolidated Plan of Liquidation Dated July 1, 2004 (as Amended) in the above captioned chapter 11 cases. All conditions to the effectiveness of the Consolidated Plan of Liquidation Dated July 1, 2004 (as Amended Through the Confirmation Hearing) (the “Plan”) have been satisfied or waived, and the Effective Date under the Plan is December 13, 2004.

Dated: December 14, 2004	LATHAM & WATKINS LLP
	By	/s/ Michael S. Lurey
		Michael S. Lurey
		Counsel for Consolidated Freightways Corporation of Delaware and its affiliated Debtors1 and Counsel for K. Morgan Enterprises, Inc. as Trustee for The Trust for Certain Creditors of Consolidated Freightways Corporation and Certain Affiliates

¹ The affiliated debtors are Consolidated Freightways Corporation, Redwood Systems, Inc., Leland James Service Corporation, CF Airfreight Corporation and CF MovesU.com Incorporated.