Committee Letter in Support of Confirmation

Summary

This template is a Committee Letter in Support of Confirmation. This template includes practical guidance, drafting notes, and alternate and optional clauses. Once the disclosure statement is approved and the terms of the plan finalized, the creditors' committee then advises the unsecured creditor body that it represents on whether to accept or reject the plan. This is usually achieved via a solicitation letter or statement of position by the creditors' committee to the general unsecured creditors stating the creditors' committee's recommendation and the reasons therefor. Notwithstanding the language of Section 1103(c)(3) of the Bankruptcy Code that a creditors' committee may "collect and file with the court acceptances or rejections of a plan," it is generally the debtor (through a retained third-party claims and balloting agent) who manages and coordinates the notice, collection, tabulation, reporting, and filing of the plan's voting results. In rare instances, more than one plan may be solicited. Where the creditors' committee proposes its own competing or alternative plan (to the debtor's plan), the creditors' committee, as the plan proponent, should handle the solicitation and balloting process, subject to the solicitation and balloting procedures required under the Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and applicable court orders. For a complete list of content on all aspects of confirmation of a Chapter 11 plan see Chapter 11 Plan Confirmation Resource Kit. For more information on creditors' committees, see Creditors' Committee Formation and Operating Procedures and Creditors' Committees' Roles in Bankruptcy. For information on confirmation requirements, see Confirmation.