Creditors lacking liens to secure their claim can fare poorly in a bankruptcy case. The “absolute priority rule” is a bedrock principle of bankruptcy law and provides that a creditor at a particular rung of the claim priority hierarchy must be paid in full before any money flows down to junior creditors. Secured creditors reside…

The Bankruptcy Code provides protection to unsecured creditors by directing the United States Trustee (“UST”) to appoint a statutory committee to represent such creditors in Chapter 11 cases.  The Bankruptcy Code also says that the UST may appoint additional committees of creditors or equity security holders as the UST thinks is appropriate.  Official committees, i.e.,…

Gardere is proud to announce the inaugural edition of Bankruptcy Talk, a blog hosted by the Firm’s Financial Restructuring and Reorganization Section.

Postings here are intended to be timely and topical, and written to make sometimes confusing rulings of courts dealing with bankruptcy issues accessible. In other words, while we may veer off occasionally into “inside…