Reviewing the Appointment of a Creditors’ Committee Organized Before a Chapter 9 or 11 Case Is Commenced

U.S Code last checked for updates: Jan 18, 2025

Rule 2007.

(a)

Motion to Review the Appointment.

If, in a Chapter 9 or 11 case, a committee appointed by the United States trustee under § 1102(a) consists of the members of a committee organized by creditors before the case commenced, the court may determine whether the committee’s appointment satisfies the requirements of § 1102(b)(1). The court may do so on a party in interest’s motion and after a hearing on notice to the United States trustee and other entities as the court orders.

(b)

Determining Whether the Committee Was Fairly Chosen.

The court may find that the committee was fairly chosen if:

(1)

it was selected by a majority in number and amount of claims of unsecured creditors who are entitled to vote under § 702(a) and who were present or represented at a meeting where:

(A)

all creditors with unsecured claims of over $1,000—or the 100 unsecured creditors with the largest claims—had at least 7 days’ written notice; and

(B)

written minutes reporting the voting creditors’ names and the amounts of their claims are available for inspection;

(2)

all proxies voted at the meeting were solicited under Rule 2006;

(3)

the lists and statements required by Rule 2006(e) have been sent to the United States trustee; and

(4)

the committee’s organization was in all other respects fair and proper.

(c)

Failure to Comply with Appointment Requirements.

If, after a hearing on notice under (a), the court finds that a committee appointment fails to satisfy the requirements of § 1102(b)(1), it:

(1)

must order the United States trustee to vacate the appointment; and

(2)

may order other appropriate action.

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Mar. 26, 2009, eff. Dec. 1, 2009; Apr. 2, 2024, eff. Dec. 1, 2024.)