MFGI) said it has initiated the final, cumulative 95 percent distribution on all non-affiliate, non-subordinated, allowed general
unsecured creditor claims, by mail and other distribution methods.
A committee may also include a variety of different creditor interests, such as trade creditors, bondholders, unions, the Pension Benefit Guaranty Corporation, landlords, tort and personal injury claimants, and other
unsecured creditor constituencies.
The largest
unsecured creditor is reportedly Pension Benefit Guaranty Corp.
Major League Baseball Properties is listed by Pinnacle Brands as the largest
unsecured creditor in Pinnacle Chapter 11 bankruptcy filing late last month in U.
If the court invokes the fraudulent conveyance provision, it could invalidate the liens the lender holds, thus making it an
unsecured creditor.
One unanswered question is whether a creditors' committee must establish and maintain an Internet website that would provide information about the debtor and its Chapter 11 case to, and solicit comments from, its
unsecured creditor constituents.
As a practical matter, plans of reorganization are difficult to confirm if the debtor does not obtain acceptance of the plan by the general
unsecured creditor class.
An
unsecured creditor supported the debtor's motion, asserting that the appointment of a creditors' committee would diminish the funds available for
unsecured creditors and that anything detracting from the debtor's ability to operate its business was not desirable.
34) The best interest of creditors test provides that the total amount of the payments to the creditor, discounted to present value, must at least equal the amount the
unsecured creditor would receive out of the estate in a straight liquidation.
First, a cramdown plan is fair and equitable if an
unsecured creditor class receives property with a present value equal to the full amount of its claims as of the effective date of the plan.
