Creditors are often skeptical of an entity’s ability to perform a Chapter 11 Plan, once confirmed. The Official Committee of Unsecured Creditors many times desires that a “watchdog” or a “gatekeeper” be involved to assure that payments under the Chapter 11 Plan are being timely and correctly made to the unsecured creditors. In these circumstances, the Chapter 11 Plan will provide for the appointment of a Disbursing Agent.
A Disbursing Agent can perform tasks related to the payment of creditor’s claims under a confirmed Chapter 11 Plan. The services can range from receiving and properly disbursing to creditors the dividends provided for under the Chapter 11 Plan; the review, analysis and Court approval/disapproval of claims filed with the United States Bankruptcy Court; and the regular provision of the reports to the United States Bankruptcy Court, the creditors, and other interested parties regarding the debtor’s performance of its plan of reorganization.
Because David R. Haberbush, Esq. of Equitable Transitions, Inc. served as a Bankruptcy Trustee for more than 15 years, he is well qualified and experienced in what is required for a Disbursing Agent to perform its tasks. Mr. Haberbush has served as a Chapter 7 and a Chapter 11 Bankruptcy Trustee and has disbursed upwards of $100 million to creditors. Mr. Haberbush has reviewed and analyzed hundreds of millions of dollars of proofs of claims filed in bankruptcy cases and has sought Bankruptcy Court orders regarding the allowance and disallowance of those claims. As such, Equitable Transitions, Inc. has significant experience in performing the functions required of a Disbursing Agent.