Creditors’ Committees are established to create a unified voice for unsecured creditors in chapter 11 bankruptcy cases. These committees consult with the debtor, investigate the assets, liabilities and financial condition of the debtor and negotiate the debtor’s sale or reorganization planning. Yet it is often an uneasy relationship. Committees can struggle with obtaining solid information from the debtor and striking the right balance between cooperating with the debtor and purposefully antagonizing the debtor and other stakeholders to maximize recovery for the committee’s constituency.
Taft attorneys who work with creditors’ committees act decisively in the beginning of a case to preserve rights and avoid giveaways. We also interview and educate each committee member in order to come up with agreed goals and objectives.
Our attorneys provide the following services to creditors’ committees:
- Introduce financial advisors.
- Review “first day” pleadings and respond appropriately.
- Organize and run efficient meetings, and establish trading and disclosure protocols.
- Implement the committee’s plans, in court and in negotiations with other stakeholders.
- Summarize developments and issues for committee members to minimize their time commitment.