Unsecured Creditors' Committees
Unsecured Creditors’ Committees in Chapter 11 cases present tough problems in tough environments – a challenge we embrace. Our attorneys help each Committee to gain a seat at the table, regularly obtaining substantial dividends for a class of creditors who often find themselves at the bottom of the bankruptcy food chain.
- Filed a motion to appoint a chapter 11 trustee to replace company management, and resolved that motion only after the company agreed to pay the creditors 100%, plus interest.
- Developed litigation strategy that elevated unsecured creditors over a $2 million federal tax lien claim. Unsecured creditors received a distribution, while the IRS got nothing.
- Obtained initial funding of more than $1 million for a creditors’ trust for unsecured creditors, with the potential for higher recovery – even though the debtors could not find a going-concern purchaser due to market overcapacity and large secured claims of lenders.
- Obtained 75% recovery for unsecured creditors of company with $70 million in annual revenue by preparing a plan that threatened to give the equity of the company to the creditors – in effect, becoming a bidder and forcing up the sale price.
- Created a priority carve-out for unsecured creditors and saved administrative costs by waiving disclosure statement requirements.