Better Late Than Never: The Informal Proof of Claim Doctrine
By: Douglas E. Wedge

Bankruptcy cases generally move at a fast pace, requiring creditors to monitor cases diligently in order to protect their interests. With high-profile chapter 11 cases becoming larger and more complex and containing many related corporate entities, the task of keeping up with the flurry of motions, objections, notices, and certifications can be challenging. Somewhere in this wave of filings will be the debtor’s motion seeking to establish the claims bar date by which time proofs of claim must be filed in order to be considered timely. Unfortunately, this deadline can slip past even the most conscientious creditor who, for whatever reason, inadvertently fails to file a timely proof of claim. Failing to file a timely proof of claim places a creditor in an unenviable position as the debtor may now object to a late-filed proof of claim as untimely, and the creditor is now one of the last parties to receive a distribution, if any.
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Creditors' Liquidating Trusts
By: Alan D. Lasko

Once the business activities of a chapter 11 bankruptcy estate have wound down, a confirmed plan can establish a creditors’ trust to facilitate the liquidation of the bankruptcy estate. The assets and liabilities of the estate are transferred to the trust for the benefit of the estate’s creditors. As previously mentioned, the trust will facilitate the liquidation of the estate’s assets and distribute the assets, net of claims and expenses, to the beneficiaries of the trust, i.e., the creditors.

If certain requirements are met, a creditors’ trust will be treated as a grantor trust for U.S. income tax purposes. A grantor trust is not taxable for federal income tax purposes, but passes its income or loss through to its beneficiaries, the grantor.
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UTCC Focuses on Claims Buying, Selling at 2004 Annual Spring Meeting

A combined meeting of the Unsecured Trade Creditors Committee and Public Companies and Claims Trading Committee was held at the Annual Spring Meeting in Washington, D.C., on April 17, 2004. The joint meeting was highlighted by a presentation concerning claims buying and selling. The outstanding panel presented “Cutting Edge Business and Legal Issues Concerning Buying and Selling of Trade Receivables and Distressed Non-Public Paper,” and included Andrew I. Silfen of the Arent Fox Firm, with Matthew A. Gold of Argo Partners undertaking the position of the claims buyer and Joseph E. Myers CCE of the Clear Thinking Group Inc., who related his experience as a “claim seller.”
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New ABI World Web Site Offers Upgraded UTCC Area

Check out the new ABI World to view the upgraded Unsecured Trade Creditor Committee section. The new “committees” area of the web site allocates space for each ABI committee. From the home page, click on “About ABI” and then “Committees” to see all of ABI’s committees. In the left-hand navigation in blue, click on “Unsecured Trade Creditors.”

Once you click on the UTCC committee, you will notice that the left-hand navigation in blue has changed again. Within the main page, you will see a listing of the committee chairs, the committee listserves (where you can join or view the UTCC committee listserve) and agendas for any upcoming meetings of the UTCC. In the left-hand navigation you will note that beneath “Unsecured Trade Creditors” there are three new options: Minutes, Newsletter and Educational Materials. The “Minutes” page provides minutes from past UTCC meetings. The “Newsletter” page provides all back issues of the UTCC electronic newsletter. The
“Educational Materials” page provides educational materials from past conferences that address UTCC issues.