Bankruptcy Case Professionals

Chapter 11 Restructuring Professionals Overview

All chapter 11 cases employ a number of case professionals working in different capacities, for the purpose of efficiently and fairly restructuring the company during the course of the case.

There are three main groups of professionals involved in any
chapter 11:

  • Debtor's case professionals
  • Creditor's case professionals
  • The U.S. Trustee

Each of these groups represents a different interest, relative
to the restructuring efforts of the company in the bankruptcy case. 

  • Debtor's case professionals advocate for the position the company takes on a particular issue related to the restructuring. 
  • Creditor's case professionals represent either individual creditors or committees of creditors to the bankrupt companies. 
  • The U.S. Trustee represents the federal government for the purpose of ensuring a fair, reasonable and expeditious chapter 11 case. 

Debtor's Case Professionals Detail

All chapter 11 debtors companies employ attorneys and financial advisors, who prepare legal and factual information which is filed with the bankruptcy court and exchanged with creditor's counsel, the court, and the U.S. Trustee in furtherance of the case.

Some chapter 11 debtor companies employ investment bankers for the purpose of marketing and selling assets, as well as raising capital to finance either the entry into bankruptcy or the exit from bankruptcy.

Some chapter 11 debtor companies employ restructuring advisors or turnaround management specialists, who may temporarily supplement the management in the operation of the company.

Some chapter 11 debtor companies face either special or mass tort litigation issues and need to retain special legal counsel to manage and respond during the course of the case. 

The number and type of professionals hired to represent the debtor companies will depend on the company itself.  Issues such as the type of company, industry, operations, finances, creditor relations and corporate governance, to name a few, can impact who and how many professionals are hired. 

For example, a retail company with hundreds or thousands of locations across the United States which has distinct business operations, creditor relationships, debt structures and industry competition is very different from that of a manufacturing company with multiple distribution centers, plants and warehouses.  

In addition to attorneys, accountants and financial advisors, the retail company may need to retain:

  • A real estate appraisal firm
  • A liquidator
  • A third party payment provider
  • Employee benefits consultants
  • Communication specialists

In addition to attorneys, accountants and financial advisors, the manufacturing company may need to retain:

  • Specialized manufacturer representatives/agents
  • Environmental consultants
  • Logistics consultants
  • Special litigation counsel
  • Board of directors/corporate counsel

Phase Eleven has experience in working with many types of case professionals for a variety of companies, industries and case types to achieve administrative excellence.

Creditor Case Professionals Detail

All chapter 11 debtor companies have thousands, if not tens and hundreds of thousands of creditors.  Once the chapter 11 case commences and a meeting of all creditors is held by the U.S. Trustee, a committee of unsecured creditors is formed and they in turn retain attorneys and financial advisors to represent the committee's interests in the bankruptcy cases.

These case professionals are tasked with investigating the pre-bankruptcy activities of the debtor companies and responding to debtor company pleadings and documents.  The goal for these case professionals is to maximize the return on estate creditor debts through oversight, objection and litigation. 

Some chapter 11 debtor cases have certain groups of creditors who have a significant financial interest in the chapter 11 case and have either sought court permission to establish a committee which represents their interests or have decided to individually (through attorney representation) pursue a fair settlement for their pre-bankruptcy debts.

As with the debtor's case professionals, the number and type of creditor professionals will depend on issues such as the type of company, industry, operations, finances, creditor relations and corporate governance to name a few, can impact who and how many professionals are hired. 

Phase Eleven has experience and methodologies for working with creditors and creditor's professionals from a variety of companies, industries and case types to achieve administrative excellence. 

U.S. Trustee Professionals Detail

An attorney from the United States Department of Justice is appointed to every chapter 11 case filed with a federal bankruptcy court.  The task of the U.S. Trustee is to:

  • Monitor all activities which occur during the course of the case
  • Ensure debtor compliance with federal law
  • Intervene on behalf of the federal government on court matters where appropriate

Phase Eleven has experience and methodologies for working with U.S. Trustee offices on a wide variety of companies, industries and case types to achieve administrative excellence. 

Phase Eleven administrative services are a large part of a successful chapter 11, because we streamline the administrative efforts of all  case professionals which results in greater efficiencies and cost effectiveness during each phase of each type of chapter 11 case.

Request a presentation of our comprehensive chapter 11 case solutions to conquer your chapter 11 challenges.