Asbestos Committee
The Asbestos Committee is comprised of representatives of the asbestos claimants. This committee represents the asbestos claimants, consults with the debtor in possession, reviews and gathers information about the debtor in possession’s activities and financial condition, and participates in the negotiation of a Chapter 11 plan of reorganization.
Automatic Stay
The filing of a Chapter 11 petition automatically triggers a halt or stay in the continued prosecution of pending lawsuits and the commencement of new lawsuits based on the prefiling conduct. This would include all asbestos-related litigation.
Bankruptcy Code
The federal bankruptcy statute is commonly referred to as the Bankruptcy Code.
Bankruptcy Court
A unit of the United States District Court (federal court) specializing in the handling of bankruptcy cases, including Chapter 11 reorganization cases
Bankruptcy Petition
The legal instrument filed with the bankruptcy court that initiates a bankruptcy case
Business Plan
A strategic plan prepared by company management that states the company’s objectives as well as the specific steps taken to achieve those goals
Chapter 11
The chapter in the United States Bankruptcy Code that contains the provisions for court-supervised reorganization of debtor companies
Claim
A right to payment, either fixed or not, contingent, liquidated, disputed or matured
Class of Creditors
A group of creditors entitled to similar treatment under a Chapter 11 plan
Confirmation
The final approval by the bankruptcy court of a debtor’s plan of reorganization. Confirmation takes place after the reorganization plan has been approved by creditors.
Creditor
A party, such as a supplier, bank lender or bondholder, to whom a debt is owed by a debtor
Creditors’ Committee
The Creditors’ Committee is comprised of representatives of the unsecured creditors. This committee represents the unsecured creditors, consults with the debtor in possession, reviews and gathers information about the debtor in possession’s activities and financial condition, and participates in the negotiation of a Chapter 11 plan of reorganization.
Debtor
The person or company that files a voluntary petition or against whom an involuntary petition is filed
Debtor-in-Possession (DIP) Financing
DIP financing is special financing available only to companies in Chapter 11 and is used to fund postfiling trade and employee obligations as well as the company’s ongoing operating needs during the bankruptcy process.
Disclosure Statement
A document that is presented to the bankruptcy court, and ultimately to creditors, that discloses the terms of the company’s plan of reorganization. The disclosure statement has sufficient information so that holders of claims against the company can make an informed decision as to whether to vote for or against the reorganization plan.
Exclusivity Period
The 120-day period of exclusivity, after the filing of a Chapter 11 petition, during which time the debtor is the only party able to file a Chapter 11 reorganization plan. The exclusivity period may be extended or shortened by the bankruptcy court. Typically, in large Chapter 11 cases such as this one, the exclusivity period is routinely extended.
Plan of Reorganization
The reorganization plan that sets forth how the claims of each class of creditors and interest holders will be treated
Proof of Claim
Proof of claim is the form filed with the bankruptcy court or claims agent designated by the court setting forth a prefiling claim.
Reorganized Debtor
The debtor company after it has confirmed a Chapter 11 reorganization plan and is no longer in Chapter 11
Schedule of Assets and Liabilities
Lists of assets and liabilities, which every debtor is required to file with the bankruptcy court
United States Trustee
A United States Trustee is appointed by the U.S. Attorney General to supervise all bankruptcy cases filed in a particular district. The role of the U.S. Trustee is: to interview the debtor shortly after the filing of the case; to schedule the first meeting of creditors; to inform and ensure that the debtor complies with its duties and responsibilities; to appoint creditors’ and equity-holder committees; to apply to the bankruptcy court for appropriate relief; and to make recommendations to the bankruptcy court.
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