: Now that the case has been converted, will creditors and shareholders be required to file proofs of claim or interest in order to participate in the distribution under any Chapter 11 plan?
The answer is different for creditors than for shareholders. As for creditors, shortly after the commencement of the Chapter 7 case the Bankruptcy Court issued a Notice establishing a bar date of February 10, 1992 for the filing of proofs of claim. More than 1,135 proofs of claim were filed, and after an extended period of review, negotiation and, in some cases, objection to disputed claims, a total amount of $384 million in unsecured claims of bondholders and creditors were allowed. That bar date is long past, and bondholders and creditors are not required to re-file proofs of claim in order to participate in any distribution under a Chapter 11 plan. As for shareholders, the Notice referenced above did not establish any bar date for the filing of proofs of interest. As it is now contemplated that any Chapter 11 plan will include some modest recovery for the holders of preferred and common stock, the Trustee will seek either by motion or through such plan to provide a mechanism and ext
Related Questions
- : Now that the case has been converted, will creditors and shareholders be required to file proofs of claim or interest in order to participate in the distribution under any Chapter 11 plan?
- Is it necessary to file a proof of claim in a Chapter 11 case?
- How long do creditors have to file a claim against an estate?
