Adequate Information Law and Legal Definition

Under 11 U.S.C. § 1125(a)(1), "adequate information" is defined as: (1)“information of a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the debtor and the condition of the debtor's books and records, that would enable a hypothetical investor [typical of the holders of claims or interests in the case] of the relevant class to make an informed judgment about the plan, but adequate information need not include such information about any other possible or proposed plan and in determining whether a disclosure statement provides adequate information, the court shall consider the complexity of the case, the benefit of additional information to creditors and other parties in interest, and the cost of providing additional information.” In re Bermuda Bay, L.L.C., 2009 Bankr. LEXIS 4215, 8-9 (Bankr. E.D. Va. Dec. 31, 2009)