A principal objective of the Bankruptcy Code is to provide a fair and transparent reorganization process in which all stakeholders may participate. Rule 2019 of the Federal Rules of Bankruptcy Procedure has always been an important tool in achieving this objective. Currently, Rule 2019 requires every entity or committee (other than official committees) representing more than one creditor or equity security holder to file a statement with the bankruptcy court setting forth, among other things, the nature and amount of claims or interests owned by the entity and the creditors or interest holders represented by the entity, or owned by the members of the committee, and the times when any holdings were acquired within a year prior to the petition. The members of an unofficial committee must also disclose the times when acquired and the amounts paid for such claims or interests and any sales or other dispositions thereof.
On April 26, 2011, the Supreme Court of the United States adopted a substantially revised Rule 2019 governing disclosure requirements for groups and committees that consist of or represent multiple creditors or equity security holders, as well as lawyers and other entities that represent multiple creditors or equity security holders, acting in concert to advance common interests in a chapter 9 or chapter 11 bankruptcy case. The Supreme Court’s order promulgating these amendments provides that they will take effect on Dec. 1, 2011, and will govern in all bankruptcy cases thereafter commenced and, “insofar as just and practicable,” all proceedings then pending.
