Eastern District of Kentucky. Official Committee of Unsecured Creditors Information Sheet. Purpose of Unsecured Creditors' Committees. In order to increase creditor participation, section 1102 of the Bankruptcy Code requires that the United States. Trustee appoint a committee of unsecured creditors as soon as practicable.
Apr 6, 2015 ... Purpose of Unsecured Creditors' Committees. To increase participation in the chapter 11 proceeding, section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors (the " Committee") as soon as practicable after the order for relief has been entered.
The committee formed pursuant to Section 1102 of the Bankruptcy Code is known as the “official” committee. It has the powers and duties set forth in Section 1103, as will be discussed below. There is nothing to prevent a group of creditors with similar interests from banding together to form an “unofficial” committee.
Apr 19, 2012 ... Imagine that you receive a notice that your best customer, who owes you more than $250000.00 on an unsecured basis, just filed a Chapter 11 bankruptcy case. You are now faced with a decision as to what involvement you want to have in the case. You can choose simply to file a proof of claim and wait to ...
A group of people who represent a company's creditors in a bankruptcy proceeding. The creditors' committee is usually further divided between secured and unsecured creditors.
Serving on the Committee Carries Its. Burdens and Its Rewards. Shortly after the filing of a chapter 11 case, the UST will hold a meeting (at least in larger cases) to form an official committee of unsecured creditors, and will usually select candidates from the list of the 20 largest unsecured creditors filed by the debtor at the ...
The committee appointed in accordance with Section 1102 is deemed the “official Unsecured Creditors' Committee”. However, there is nothing in the law that precludes creditors with similar interests from banding together into “unofficial committees”. Unofficial committees do not have the specific rights and powers of the ...
The court stated, in a footnote, that "...holding an unsecured creditor and member of an unsecured creditors' committee personally liable for breach of a fiduciary duty to .... In In re Pacific Gas & Electric Co., the U.S. Trustee (UST), in addition to appointing an Official Committee of Unsecured Creditors, appointed an Official ...
May 3, 2011 ... Consideration is given to the powers and duties vested with the committee to maximize the return to unsecured creditors. ... a creditor may consider other alternatives: (1) it may request of the U.S. Trustee appointment as an ex officio member to the official committee; (2) it may request of the bankruptcy court ...