Post-confirmation Trusts

Summary

This practice note discusses post-confirmation trusts, the terms of a trust agreement, selecting a post-confirmation trustee, and related issues. Many Chapter 11 plans establish one or more trusts to wind up a debtor's estate and carry out the terms of the Chapter 11 plan (although Chapter 11 plans may also call for alternative means of post-confirmation administration, including by a reorganized debtor). Such post-confirmation trusts are popular tools for resolving certain types of claims and interests in a Chapter 11 estate and often enable the debtor to emerge from bankruptcy sooner than would have been possible without the utilization of such a trust.