Restructuring Advisors

Official Committee of Unsecured Creditors

Client Name: Official Committee of Unsecured Creditors
Region: Southeastern
Distribution: $29 milliion
Experise: Bankruptcy Administration

The Challenge:

Jim Burritt, managing partner of Restructuring Advisors was engaged by the Official Committee of Unsecured Creditors through the Federal Bankruptcy Court in Northern Georgia to manage the claim payments for a large, dated and complex Chapter 11 liquidating bankruptcy filing.

Our Actions:

The total number of unsecured parties of which claim payments were to be made was 484 spread across the country and broken down into five specific categories. Two of the categories were made up of former employees of the debtor (bankrupt company) for which state and federal withholdings had to be calculated and tax payments issued for each individual. The total amount of claim payments authorized was $29,754,639. Along with locating each of the affected parties, Mr. Burritt assumed responsibility for issuing and filing W-2’s to the more than 230 former employees and 1099’s to each of the professionals and contractors.

Results:

The entire process from the date of Court approval through final reconciliation was completed in approximately 90 days. As the debtor had been out of business for more than 2 years when the claim s were authorized, former employees had moved and vendors due payments had been s old or had gone out of business. When considering the time that transpired, Counsel for the unsecured creditors felt very good that 96% of the 484 claimants were located and provided the full amount of claim distributions they were due.