In the United States, Chapter 11 is a useful tool for businesses. Insolvency Services Group (ISG) is frequently appointed as a liquidating trustee, responsible entity or liquidating agent, either under a liquidating Chapter 11 Plan or in connection with a bankruptcy case at the request of a creditor’s committee. The approval of ISG in this role represents the confidence of the commercial bankruptcy legal community and the federal courts in ISG and its team of specialists.
This role often involves the following:
- Prior to sale or liquidation, monitoring, and in some instances managing, the debtor company’s business operations.
- Managing the marketing and sale of the debtor’s assets, whether as a going concern or on a piecemeal basis. This includes the selection of an investment banker, business broker or auctioneer, as the case may be. It also includes taking all steps necessary to obtain court approval of the sale, and prosecuting the sale transactions to closing.
- Managing the claims vetting process which includes reviewing claims, comparing them to company records and, where appropriate, objecting to claims and prosecuting or settling those objections.
- Prosecuting avoidance power actions and other claims for relief (such as contract claims) which are property of the bankruptcy estate or have been conveyed to the liquidating trust pursuant to the liquidating plan.
- Issuing and filing all required reports.
- Ensuring that all tax returns are prepared and filed.
- Disbursing funds to creditors in accordance with the plan, or other controlling order or document approved by the court.
- Taking all reasonable steps to expeditiously close the Chapter 11 case.
Serving in this capacity, ISG has developed teams who work seamlessly across the board within their disciplines, possessing excellent working relationships with the governmental agencies involved in this process. These engagements require, among other things, integration of a sophisticated understanding of the law (including, without limitation, bankruptcy tax, corporate, commercial tort, real property, intellectual property, environmental, labor and employment), business restructuring, and information technology for reporting systems, accounting and negotiation.
ISG has the integrated expertise to fulfill these roles with extensive data processing and information technology capabilities, staff accountants and adjusters, and specialized software to interface with the bankruptcy court databases for creditors, reporting and the like.