Section 1102 - Creditor's and Equity Security Holder's Committees
Title 11 of the United States Code - Bankruptcy
REORGANIZATION – CHAPTER 11
Creditor’s and Equity Security Holders’ Committees - Section 1102
11 USCS § 1102
(1) Except as provided in paragraph (3), as soon as practicable after the order for relief under chapter 11 of this title, the United States trustee shall appoint a committee of creditors holding unsecured claims and may appoint additional committees of creditors or of equity security holders as the United States trustee deems appropriate.
(2) On request of a party in interest, the court may order the appointment of additional committees of creditors or of equity security holders if necessary to assure adequate representation of creditors or of equity security holders. The United States trustee shall appoint any such committee.
(3) On request of a party in interest in a case in which the debtor is a small business debtor and for cause, the court may order that a committee of creditors not be appointed.
(4) On request of a party in interest and after notice and a hearing, the court may order the United States trustee to change the membership of a committee appointed under this subsection, if the court determines that the change is necessary to ensure adequate representation of creditors or equity security holders. The court may order the United States trustee to increase the number of members of a committee to include a creditor that is a small business concern (as described in section 3(a)(1) of the Small Business Act [15 USCS § 632(a)(1)]), if the court determines that the creditor holds claims (of the kind represented by the committee) the aggregate amount of which, in comparison to the annual gross revenue of that creditor, is disproportionately large.
(1) A committee of creditors appointed under subsection (a) of this section shall ordinarily consist of the persons, willing to serve, that hold the seven largest claims against the debtor of the kinds represented on such committee, or of the members of a committee organized by creditors before the commencement of the case under this chapter [11 USCS §§ 1101 et seq.], if such committee was fairly chosen and is representative of the different kinds of claims to be represented.
(2) A committee of equity security holders appointed under subsection (a)(2) of this section shall ordinarily consist of the persons, willing to serve, that hold the seven largest amounts of equity securities of the debtor of the kinds represented on such committee.
(3) A committee appointed under subsection (a) shall--
(A) provide access to information for creditors who--
(i) hold claims of the kind represented by that committee; and
(ii) are not appointed to the committee;
(B) solicit and receive comments from the creditors described in subparagraph (A); and
(C) be subject to a court order that compels any additional report or disclosure to be made to the creditors described in subparagraph (A).
If you clicked this page, you may be curious to know more about the US States Bankruptcy Code. At Sagaria Law, we find more and more consumers dedicated to educating themselves on bankruptcy in order to make an informed decision. For that, we applaud you! And, we wanted to make it easier for you, so we have provided the bankruptcy code here for your convenience. No, your eyes have not deceived you; the entire United States Bankruptcy Code is here for your review.
Sagaria Law offices of the Bay Area has several bankruptcy locations serving the North Bay, South Bay and surrounding areas including San Francisco, San Mateo, Fremont, Daily City…all the way to San Jose and beyond!