Creditors’ Committee Representation in Florida

In a Chapter 11 bankruptcy reorganization proceeding, the unsecured creditors’ committee often plays a significant role and may influence the outcome of the case. Florida Chapter 11 bankruptcy lawyer Aaron Wernick provides counsel and representation to creditors’ committees, to assist the committee and members in fulfilling their fiduciary duties. Applying more than 15 years of complex bankruptcy experience, Aaron works closely with the committee to guide the members through the complicated procedural and substantive landscape of a Chapter 11 proceeding.

Proven Success in Chapter 11 Bankruptcy

Aaron Wernick is certified in business and consumer bankruptcy law by the American Board of Certification and is recognized by Chambers and Partners for bankruptcy and restructuring in the Florida Spotlight Guide for 2024. He has built an extraordinary record of obtaining reorganization plan confirmation for approximately 95% of his clients.

Aaron’s success flows from the high-level of his knowledge and skill and from his exceptional problem-solving and negotiation skills. He knows how to strategically and efficiently pursue solutions that resolve disagreements. His demonstrated proficiency in navigating through the creditors’ committee process is a significant benefit in advising creditors’ committees and members and assisting with committee negotiations with a debtor, while ensuring that committee members fulfill their fiduciary duties to the group of unsecured creditors they represent.

Creditors’ Committee Process

The United States Bankruptcy Code establishes the creditors’ committee process as part of the Chapter 11 bankruptcy process. After a solicitation process, the United States Trustee appoints a committee of unsecured creditors, which usually consists of the seven largest unsecured creditors willing to serve on the committee. Members of the committee owe fiduciary duties (including care, loyalty, and confidentiality) to all the unsecured creditors as a group, and cannot act solely in their own self-interest.

During a bankruptcy case, the committee may consult with the debtor, investigate the debtor and their business operations, participate in formulation of a plan of reorganization, and perform other services in the interest of the unsecured creditors’ group. In fulfilling its statutory role, the creditors’ committee has significant influence over nearly all aspects of a Chapter 11 case, including the terms of the reorganization plan and other matters that affect the outcome of the case. The committee may also play an important role in the debtor’s ongoing business operations.

With approval of the bankruptcy court, a creditors’ committee may retain legal counsel and other professionals (such as accountants) to represent or provide services to the committee. Given the complex, detailed procedure and complicated laws that apply, creditors’ committees usually do retain an experienced Chapter 11 lawyer to provide counsel and representation throughout the process. The committee’s legal counsel facilitates discussions with the debtor, advises committee members on all aspects of the case throughout the process, and assists in negotiations with the debtor concerning the terms of the reorganization plan.

Given the significant role and responsibility of the committee and the degree of the committee’s influence over the outcome of a case, a creditors’ committee should retain an attorney with extensive experience in complex Chapter 11 cases and highly effective negotiation and legal skills. Aaron Wernick’s many years of success in complex bankruptcy cases demonstrate his ability to guide a case through the Chapter 11 process and to negotiate effectively during the creditors’ committee process. His skill and abilities enable Aaron to find solutions to difficult and challenging problems, while protecting and advancing client interests.