Pryor Cashman Partner Seth Lieberman, chair of the Bankruptcy, Reorganization + Creditors' Rights Group and co-chair of the Corporate Trust Practice, and Associate Sameer Alifarag, a member of the Bankruptcy, Reorganization and Creditors' Rights Group and Corporate Trust Practice, co-authored an article for the ABI Journal, published by the American Bankruptcy Institute.
In "Hands Off My Creditors' Committee! Examining the Trend of Reconstituting and Disbanding UCCs," which appears in the August 2023 issue, Seth and Sameer analyze bankruptcy courts' authority over unsecured creditor committees, which the Office of the United States Trustee (UST) appoints in Chapter 11 cases.
The article highlights cases that demonstrate a growing trend away from the UST's exclusive authority concerning the appointment and composition of such committees, and "focuses on those cases and the importance of those decisions for future chapter 11 bankruptcies."
Following a wide-ranging review of how unsecured creditor committees work in the current bankruptcy system, they note that, at a minimum, the standards by which courts should intervene in committee affairs should require some heightened standard of review.
Read the full article using the PDF link above.
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