Creditors' Committee

No CLE hour available A fireside chat between Daniel Kamensky and Judge Goldblatt touching on fiduciary duties of creditors and other related topics.

Two pairs of judges square off to consider (1) whether bankruptcies can be properly filed when a debtor faces a deluge of potential tort claims and (2) whether bankruptcy courts can support plans regarding certain special fee and financing arrangements for debtors. RESOLVED: That a bankruptcy is filed in good faith where the debtor is not otherwise in immediate financial distress and appears to have the liquidity to pay its creditors in full, but where the case is filed because of the debtor is a defendant facing a deluge of tort claims that could at some point threaten the debtor’s business and where the debtor believes that the mechanism for liquidating those claims through a trust created under a plan of reorganization will be fairer and better for all parties than the results that would otherwise obtain in the tort system. RESOLVED: That a bankruptcy court may approve a DIP financing agreement that incorporates the milestones set out in a restructuring support agreement, that provides that (a) the debtors will propose a plan that provides specified treatment to the Supporting Parties, which treatment is materially the same as the plan provides to similarly situated creditors; (b) obligates the Supporting Parties to vote in favor of the debtor’s plan and to vote against any competing plan; and (c) provides that the Supporting Parties (and only the supporting parties) will provide exit financing to the Reorganized Debtors, at rates and fees that exceed prevailing market terms.

This panel will discuss UST authority in appointing committees, venue impact on committee appointment and committee composition, when it makes sense to have two committees and when it does not, and the retention of professionals or substantive contributions. The panelists also will discuss the scope of Rule 2004 examinations post-confirmation.

Unsecured creditors (and official creditor committees) may appear hopelessly “out of the money” at the beginning of a case, but how may they most effectively and most responsibly assert their interests throughout the case to win a recovery? This panel addresses this question and more.

As chapter 11 practice continues to evolve, restructuring support agreements (RSAs) are being used with increasing frequency by companies seeking to de-lever their balance sheets or sell assets, both pre-petition and post-petition. This panel will provide an explanation of these agreements, discuss their pros and cons from the perspective of various parties, review common objections that have been made to the approval of RSAs, and describe the approval process in court proceedings.

This panel will focus on covering lenders’ perspectives on chapter 11 strategy and options, such as note sales, out-of-court restructurings or formal bankruptcy sales, and will discuss lenders’ and borrowers’ perspectives on regulatory challenges and procedural issues, such as anti-trust and environmental concerns, that are sometimes raised during a bankruptcy case, as well as issues with § 363 sales, DIP milestones and restructuring support agreements.

Creditors’ committees are integral to the success of chapter 11 cases. This panel will discuss what it takes to maximize results for unsecured creditors in today’s chapter 11 cases, including how to deal with the different interests of the creditors who sit on creditors’ committees.

Creditors’ committees are integral to the success of chapter 11 cases. This panel will discuss what it takes to maximize results for unsecured creditors in today’s chapter 11 cases, including how to deal with the different interests of the creditors who sit on creditors’ committees.

Sponsored by the Unsecured Trade Creditors Committee Independent directors are taking on larger and more frequent roles in complex commercial cases. What role do official committees have in these cases, where special committees have often been appointed prepetition to consider and authorize transactions, or may be tasked post-petition with investigating transactions authorized before their appointment? This webinar will explore how the roles and incentives of independent directors/special committees differ from those of official committees; analyze the hurdles each type of entity faces when investigating and raising challenges to company transactions; and consider how each serves the estate—and whether there is room for cooperation.

This panel will discuss the various standing doctrines that apply in federal and bankruptcy courts, including constitutional (Article III) standing, prudential standing, statutory standing (“party-in-interest” status) and derivative standing, and will cover issues that arise both in chapter 11 cases and the consumer arena.