Professional Roles and Services

Chapter 11 Restructuring Professionals Overview

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

  • Debtor's case professionals advocate for the position that a company takes on a particular issue related to its restructuring. 
  • Creditor's case professionals represent either individual creditors or committees of creditors to 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 debtor companies employ attorneys and financial advisors who prepare legal and factual information for filing with the bankruptcy court and to exchange with creditor's counsel, the court, and the U.S. Trustee.

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

Some chapter 11 debtor companies employ restructuring advisors or turnaround management specialists who may temporarily supplement 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 to these specific issues during the course of their case. 

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

For instance, a retail company with hundreds of locations across the United States has distinct business operations, creditor relationships, debt structures and industry competition that differ from those of a manufacturing company with multiple distribution centers, plants, and warehouses.  

In addition to attorneys, accountants and financial advisors, such a 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, a manufacturing company in its case may need to retain:

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

Phase Eleven has experience 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 of thousands of creditors.  Once a chapter 11 case commences, a meeting of its creditors is held by the U.S. Trustee, and a committee of unsecured creditors is formed.  The committee retains attorneys and financial advisors to represent their interests in the bankruptcy case.

Committee case professionals are tasked with investigating the pre-bankruptcy activities of debtor companies and responding to debtor company pleadings and documents.  The goal of committee 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 each have a significant financial interest in the chapter 11 case. These creditors 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 debtor case professionals, the number and type of creditor professionals depends on issues such as company type, industry, operations, finances, creditor relations and corporate governance. 

Phase Eleven has experience and methodologies for working with creditors and creditor's case 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 U.S. Trustee is tasked with:

  • Monitoring all activities that occur during the course of a case
  • Ensuring debtor compliance with federal law
  • Intervening 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 company, industry, 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.