Creditors' Committees: Navigating Disclosures, Fiduciary Duties, Attorney-Client Privilege, and Fees and Expenses

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, October 8, 2015

Recorded event now available

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Program Materials

This CLE webinar will discuss the characteristics of official, unofficial and ad hoc creditor committees in Chapter 11 bankruptcy proceedings, including committee structure, rights and obligation, advantages and pitfalls. The panel will examine recent legal developments impacting some of the most-contested issues involving creditor committees—disclosure obligations, fiduciary duties, the attorney-client privilege, and entitlement to fees and expenses.

Description

The dynamic between creditors’ committees and creditor classes, as well as between committees and the debtors, has evolved during the recent wave of high stakes bankruptcy proceedings. As the capital structures of Chapter 11 debtors have grown more complex, creditors holding claims across tranches of debt are prevalent, resulting in multiple formal and ad hoc committees.

This leads to more contentious and complicated battles between creditors seeking to maximize their recovery. Add in the proliferation of distressed debt investors and hedge funds creditors, and the complexity and negotiations become even more contentious.

While the principal role of the official creditors’ committee is to participate in the debtor’s plan of reorganization, unofficial and ad hoc committees have begun to take a more active and prominent role in the proceedings. Recent legal developments have added some clarity and structure to the role of these unofficial creditor committees.

Listen as our authoritative panel of bankruptcy practitioners examines the evolving trends in creditors’ committees in Chapter 11 cases. The panel will discuss the characteristics of official, unofficial and ad hoc creditor committees, including committee structure, rights and obligation, and advantages and pitfalls. The panel will discuss recent developments impacting some of the more contentious issues involving creditor committees—disclosure obligations, fiduciary duties, the attorney-client privilege, and entitlement to fees and expenses.

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Outline

  1. Structuring the committee
    1. Optimal composition of committee beyond top/largest creditor consideration
    2. Selection of professional advisors
  2. Committee member considerations
    1. Fiduciary duties
    2. Liabilities of members
    3. Risks and rewards of participating
    4. Conflicts of interest and/or self-dealing
    5. Disclosure obligations: nondisclosure and confidentiality agreements
  3. Committee responsibilities
  4. Entitlement to fees and expenses

Benefits

The panel will review these and other key issues:

  • What is the optimal composition of a creditors’ committee beyond the top or largest creditor?
  • What are the benefits and risks for participating in a creditors’ committee?
  • How do the fiduciary duties differ between formal and ad hoc creditor committees?
  • How does entitlement to fees and expenses differ between official and ad hoc committees?

Faculty

Edwin Caldie
Edwin Caldie

Partner
Stinson Leonard Street

Mr. Caldie provides creative insight and effective solutions to creditors, public companies, financial institutions,...  |  Read More

Janine M. Figueiredo
Janine M. Figueiredo

Partner
Hahn & Hessen

Ms. Figueiredo’s practice focuses primarily on the representation of creditors’ committees and secured...  |  Read More

Steven Kortanek
Steven Kortanek

Partner
Womble Carlyle Sandridge & Rice

Mr. Kortanek is a business bankruptcy lawyer and business litigator who has practiced for over 20 years. He...  |  Read More

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