Phases of the Case

Chapter 11 Case Phases Overview

There are three distinct phases to every bankruptcy case regardless of whether the case is a traditional, liquidating traditionalprearranged or prepackaged chapter 11:

Pre-petition and post petition phases relate to the petition date or the date on which the company filed for chapter 11 bankruptcy.  The latter refers to the confirmation or court order approving a plan of reorganization - the legal document that provides for creditor settlements. 

The petition date is an important marker of time because it distinguishes how a debt should be classified in a plan of reorganization and in turn, how it should be paid. 

With pre-petition debts, the payment cannot occur until after a plan of reorganization has been accepted by a majority of creditors, approved by the federal bankruptcy court, and all creditor claims within a particular class have been settled.  

With post petition debts, the payment occurs post petition to maintain good standing creditor relationships.  If a post petition payment is not made, it could become an administrative claim that would be paid in kind with pre-petition debts upon settlement of a class of creditors post confirmation.   

In each phase of the case different restructuring activities take place with the ultimate goal of settling all debts of the bankruptcy estate and closing of the case.  The following lists some of the restructuring actions which take place during each phase of the case.

Chapter 11 Case: Pre-petition Phase  

During the "pre-petition" or "bankruptcy case preparation" phase attorneys, advisors and Phase Eleven prepare factual diligence and legal information for use in pleadings that initiate the bankruptcy case and are served or "sent" to creditors.  The signed court orders which result from these pleadings allow a company to take certain actions under chapter 11 protection.

Depending on the type of case (traditional, liquidating traditional, prearranged or prepackaged), the pre-petition phase may require more up front effort for case professionals and company officials related to the plan of reorganization preparation and solicitation. 

Communication about content, constructs, purposes, timing of documents, and events are an important aspect of comprehensive chapter 11 pleadings and the success of a court filing. 

Phase Eleven's case preparation team assists professionals with information assembly, communication, and preparation of first day pleadings by utilizing methodologies developed at two of the country's premier law firm bankruptcy practices.     

As part of solid case preparation, our team will organize and record pleading diligence in the Relational Restructuring Database for reference and recycling in all future communications, compliance materials and filed court pleadings

Chapter 11 Case: Post Petition Phase

The post petition or "bankruptcy case" phase begins once voluntary petitions and first day pleadings have been filed in federal bankruptcy court.   

During the post petition phase, our case professionals focus their efforts on restructuring of business operations, bankruptcy code and chapter 11 case compliance, creditor responses, schedules and statements, claims, solicitation (if not a prepackaged case) and plan confirmation for the ultimate purpose of confirming a plan of reorganization and exiting bankruptcy.

Phase Eleven's case management team provides administrative support to case professionals for all post petition aspects of a chapter 11 case. 

Phase Eleven's case management teams, utilizing their advanced Microsoft SQL Server enabled database, organize and record all post petition case information for reference and re-use in all future communications, compliance materials and filed court pleadings. 

Phase Eleven offers administrative support for the following list of post petition services:

§  Business Operations

§  Case Administration

§  Claims Processing

§  Data Organization  

§  Diligence Support        

§  Noticing

§  Schedules and Statements

§  Solicitation

Chapter 11 Case: Post Confirmation Phase

The plan of reorganization, voted on during the post petition solicitation phase of the chapter 11 case, must  be approved by a federal bankruptcy judge in order for companies to exit bankruptcy protection and function as a going concern. 

The confirmation hearing which results in the signature of an order confirming the plan of reorganization establishes the next phase of the case - the post confirmation phase.  The confirmation order approves a company's plan of reorganization which establishes, among other things:

  • Effective date and related compliance issues
  • Estate trust administrator
  • Plan class treatments for disbursement

During the post confirmation phase of the case, the estate trust administrator and the creditors committee take certain actions in the bankruptcy court to object to claims, recover funds and unwind the remaining assets of the estate.  An established goal of the post confirmation phase is to maximize remaining recovery to estate creditors through a combination of business operations, case administration, claims objection, disbursement and estate litigation.

Phase Eleven provides solid administrative support to all parties of the post confirmation estate for an expeditious and efficient conclusion of the case.

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