In the Altegrity, Inc. bankruptcy proceeding, a formation meeting has been scheduled for Tuesday, February 24, 2015 at 10:30 a.m. (ET) at the Doubletree Hotel, 700 N. King Street, Wilmington, DE 19801. Click here for a copy of the Notice of Formation Meeting for Official Committee of Unsecured Creditors issued by the Office of the United States Trustee.
In addition, The U.S. Trustee has requested that a Section 341 Meeting of Creditors be scheduled for Wednesday, March 18, 2015 at 3:00 p.m. (ET) at the J. Caleb Boggs Federal Court House, 844 N. King Street, 2nd Fl., Room 2112, Wilmington, DE 19801.
One way in which creditors can assert their interests is to attend the Formation Meeting and become a part of the creditors’ committee. The creditors’ committee is one of the most active participants in a corporate bankruptcy, and has access to a significant amount of information not available to normal creditors. There are, naturally, trade-offs to gaining access to this information (limitations on a company’s ability to trade in securities of the debtor), but you will be far better informed of what occurs in the bankruptcy proceeding.
Another way creditors can assert their interests is to attend the Section 341 Meeting of Creditors, in order to depose the debtor’s representative regarding the assets and liabilities of the bankruptcy estate. Creditors may retain counsel to conduct such an examination of the debtor’s representative. The Section 341 meeting of creditors is an integral component of a bankruptcy proceeding. Creditors often want to know what information is made available, and what procedures are followed, during a typical meeting of creditors.
General topics that are discussed during a Section 341 meeting can include the following issues:
- The nature of scope of a debtor’s assets and liabilities;
- The amount of accounts receivable and accounts payable;
- To what extent the debtor is able to repay its creditors;
- Whether insurance remains active;
- The condition and location of goods received in the 20 days before bankruptcy;
- The condition and location of goods received in the 45 days before bankruptcy;
- The debtor’s or trustee’s plan to reorganize its debt or liquidate its assets;
- The debtor’s plan after it emerges from bankruptcy (not applicable to a Chapter 7 debtor);
- Whether the debtor experienced any changes in revenue since filing for bankruptcy; and
- Potential avoidance actions to be commenced by the debtor or trustee