Who Will Protect The Interests Of The Dealers?
The initial phases of a Chapter 11 reorganization case for a manufacturer will involve the formation of various committees which play an important role in a reorganization. An official creditors committee will be appointed to represent all creditors but that committee may take positions that are unfavorable to the dealers. The dealers should attempt to have the United States Trustee or the Court appoint an official committee of dealers. If that cannot be accomplished, the dealers may form an ad hoc committee to protect their interests. The dealers should discuss the situation among themselves and become organized well in advance of a potential filing in order to have a unified voice in connection with pre petition negotiations with the manufacturer.
