Unsecured Trade Creditors Committee

Committees

Post date: Friday, October 30, 2009

May a creditor’s claim be disallowed simply because he or she failed to provide supporting documentation in violation of Rule 3001 of the Federal Rules of Bankruptcy Procedure? The answer depends on which jurisdiction the creditor is pursuing its claim in, and courts are currently sharply divided on the issue.

Post date: Saturday, August 01, 2009

Unsecured trade creditors in mid- to large-sized chapter 11 cases are frequently targets of distressed-debt traders looking to buy unsecured claims. These traders make their money in a variety of ways, principally on the assumption that the claims they buy today will be worth more later either in the distressed-trade market or upon plan distribution.

Post date: Saturday, August 01, 2009

The Tenth Circuit in Southwest Food Distributors, LLC, 561 F.3d 1106 (10th Cir. 2009), affirmed the denial of the proposed retention of “national” counsel by the committee of unsecured creditors. “While the right to select counsel of one’s own choice is an undeniable right afforded to participants in bankruptcy, that right is not without boundaries.

Post date: Monday, June 01, 2009
Photo of Antony Walker
Antony Walker

As several U.S. automakers teeter on the brink of collapse, the prospect of bankruptcy reorganization has become a present-day reality for two of the largest automakers in the U.S. Reorganization would involve plant closures, brand elimination, layoffs, union concessions, reduced dealer networks, asset sales and creditor compromise.

Post date: Monday, June 01, 2009

The enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) brought sweeping changes to the Bankruptcy Code, but perhaps none more important to most unsecured trade creditors than a single word changed in 11 U.S.C. §547(c)(2).

Post date: Monday, December 01, 2008
Photo of Deborah L. Thorne [1]
Deborah L. Thorne [1]

In an effort to protect suppliers who sell goods in the days leading up to a customer's bankruptcy, Congress has, via §503(b)(9) of the Bankruptcy Code, carved out special treatment for claims made by creditors who sell and deliver goods to a debtor during the 20 days before a debtor's filing.

Post date: Monday, December 01, 2008

Last June, the Supreme Court decided the case of Florida Department of Revenue v. Piccadilly Cafeterias Inc., which dealt with a disputed tax exemption on an asset sale.  Section 1146(a) of the Bankruptcy Code provides a stamp-tax exemption for any asset transferred under a plan confirmed under chapter 11. 

Post date: Friday, August 01, 2008

An emerging strategy many hedge and private equity funds are pursuing is known as the "loan to own" investment.  In this type of investment, a fund's investors acquire debt, and sometimes certain amounts of equity or management control, such as voting power or board seats, from a lender of a distressed company.

Post date: Friday, August 01, 2008

Customers who don't pay are an unfortunate but inevitable reality of doing business.  Some will tumble into bankruptcy; others will continue to operate and perpetuate the suppliers' risk of nonpayment.  Usually in this environment, communication from the customer is substantially reduced, if not stopped.  What can a supplier do to better evaluate this risk and act to minimize its potential loss

Post date: Friday, February 01, 2008

Creditors are often surprised by how difficult it is to allow and issue payment on their proof(s) of claim.[1] Many creditors believe that it is very clear that they are owed money. Indeed, all correctly filed proofs of claim are prima facie allowed until the court determines otherwise.

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Mr. Eric S. Chafetz
Co-Chair
Lowenstein Sandler LLP
New York, NY
(646) 414-6886

Mr. Daniel I. Waxman
Co-Chair
KEWA Financial Inc.
Lexington, KY
(859) 233-0352

Ms. Lauren Dorsett
Communications Manager
Davis Wright Tremaine LLP
Seattle, WA
(206) 622-3150

Ms. Samantha Martin
Newsletter Editor
Cleary Gottlieb
New York, NY
(212) 225-3341

Mr. A.J. Webb
Newsletter Editor
Frost Brown Todd LLP
Cincinnati, OH
(513) 651-6842

Mr. Jonathan J. Wernick
Special Projects Leader
B. Riley Advisory Services
Los Angeles, CA
(213) 409-6237

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