Creditors’ Committee Representation
We have been counsel to the Creditors’ Committee in numerous cases.
A Committee is appointed by the United States Trustee’s Office in most Chapter 11 cases, and is authorized by the Bankruptcy Code to engage its own counsel. We understand the Chapter 11 process, and aggressively pursue the interests of our clients’ by closely monitoring the case, negotiating with debtor’s counsel, and litigating where necessary. Throughout the process, we meet and confer with the Committee, keeping the client informed and consulting with it to determine strategy and direction.
Under the Chapter 11 scheme, the Creditors’ Committee will usually represent the interests of those unsecured creditors at the lowest priority level, senior only to equity interests and often at great disadvantage. Our experience and knowledge of the bankruptcy process is particularly important in this context. Committee representation involves aggressively representing the interests of creditors, but also being cognizant of the interests of the bankruptcy estate overall. For instance, Committee counsel may be called upon to file a plan of reorganization, or to contest a secured creditor seeking to obtain relief from the stay. Counsel must possess a broad variety of skills, in the legal arena and as a business advisor, to negotiate this difficult terrain.