The Unsecured Trade Creditors Committee (UTC) was hard at work once again in 2016. Among other things, the UTC hosted multiple committee-wide conference calls and webinars on wide-ranging topics of interest to its members and ABI members generally, published quarterly newsletters containing articles on hot legal issues, organized panels at both national ABI conferences, and wrote a practice manual that was published by ABI. Once again, the UTC was a multi-channel distributor of knowledge and information to its members, and provided great networking and leadership opportunities.
In 2016, we continued what we believe to be the most important and well-received benefit of membership on our committee: bimonthly committee-wide conference calls and webinars on relevant topics. In our conference calls, we covered issues of importance to unsecured trade creditors, including (1) a presentation about “gifting” and other recent developments regarding application of the absolute priority rule and (2) a primer on the local practice and protocol in the bankruptcy courts in New York and Delaware, two of the busiest courts in the country. We also put together not one but two joint ABI-wide webinars. The first webinar, which was put on jointly with the Litigation Committee, dealt with a canvassing of the issues arising under § 503(b)(9) of the Bankruptcy Code approximately 10 years after it was added to the Bankruptcy Code. The second webinar, which was a joint effort with the Mediation Committee, addressed issues arising in connection with the mediation of avoidance actions in bankruptcy court, with an emphasis on procedural issues and strategies in connection with mediating preference actions. The UTC is actively seeking ideas and discussion leaders for future committee-wide calls and webinars. If you would like to suggest a topic or lead a call, please contact either of the UTC co-chairs, Paul R. Hage or Mark E. Felger.
Our newsletter articles covered a wide array of topics, including the power to disband creditors’ committees; the intersection between Article 2 and the Bankruptcy Code (when worlds collide); overriding royalty interest characterization in oil and gas bankruptcies; application of the absolute priority rule in individual chapter 11 cases; and the availability of fee-shifting defense provisions after ASARCO. The UTC newsletter is published quarterly, and we are always looking for articles for our upcoming newsletters. If you are interested in writing an article, or have any ideas or suggestions for newsletter articles, please contact either of our Newsletter Editors, Susan Trent or Grant L. Cartwright.
At the 2016 Annual Spring Meeting in Washington, D.C., the UTC paired with the Ethics and Professional Compensation Committee to present a lively and entertaining panel entitled “Beware the Traps: Ethical and Fiduciary Issues for Committee Members and Professionals.” Likewise, at the 2016 Winter Leadership Conference in Southern California, the UTC paired with the Asset Sales Committee to present a panel entitled “Disruptive Engagement: The Role of Creditors in Asset Sales.” Both presentations were excellent and very well received. The committee is always looking for topics for upcoming national meetings. If you have ideas, please contact Jennifer M. McLemore, the committee’s Education Director.
Finally, the UTC leadership and members devoted considerable time and effort to publish a practice manual entitled Representing the Creditors’ Committee: A Guide for Practitioners, which ABI published in April. This book provides an in-depth analysis of issues faced by unsecured creditors’ committees and the professionals retained to represent such committees, and outlines strategies to address these issues and maximize the return for unsecured creditors.
As summarized herein, the main theme for the UTC in 2016 was teamwork. A collaborative effort was demonstrated by and amongst the leadership team and the UTC membership in publishing a book and with four other ABI committees in putting on two webinars and two panels. Many thanks to all of you for your continued interest and enthusiastic participation in the UTC in 2016. We look forward to sharing exciting issues, programs and articles with you in 2017.