What We Do and How We Do It

We serve as the trustee for Chapter 11 post-confirmation trusts and as the administrator for Chapter 11 plans. We work with the counsel and financial advisors to debtors and unsecured creditors' committees to create and administer trusts that efficiently and fairly maximize recoveries for creditors.

We also hold proxies for creditors who wish to attend organizational meetings for unsecured creditors' committees in Chapter 11 cases but are unable to attend or participate in person.

TRUST Formation and Plan Administration

In the case of a post-confirmation trust, our services begin with the establishment of the trust or plan. We work with the bankruptcy professionals, the attorneys for the debtor and the creditors’ committee and their respective financial advisors to draft trust and plan administration instruments that are fair to the interests of creditors. This ensures that the trust will be able to function properly and achieve its goals.

We take responsibility for all aspects of a trust’s administration, or where a trust is not created, administration of the Chapter 11 plan as specified in the plan administration agreement. This includes the creation and maintenance of bank accounts, managing cash and disbursements and the preparation and filing of necessary reports and tax returns.

When serving as a Chapter 11 administrator we perform much the same services that we perform as a post-confirmation trustee. However, depending on the terms of the Chapter 11 plan, the services and responsibilities of a plan administrator may be less broad than those of a post-confirmation trustee. Each case is unique and we tailor our services to the dictates of the Chapter 11 plan and the governing plan administration agreement.

Independent and Objection Judgement and Advice

ATG selects the professionals to represent the post-confirmation trust, and looks to those professionals for advice and counsel. However, we understand that our duty is to exercise independent judgment as to what is in the trust’s best interests.

ATG takes that responsibility very seriously. We continuously monitor trust expenses to ensure that the trust operates efficiently and economically.

This means the regular review of professional expenditures to ensure that the fees incurred in the representation of the trust are justified and appropriate.
When acting as a plan administrator, the professionals who represented the debtor during the Chapter 11 case often continue to represent the debtor in the post-confirmation period. However, our exercise of independent judgment based on the best interests of the debtor’s estate remains the same as it does for a post-confirmation trust.

Asset Recovery and Litigation

Because of its direct and significant impact on creditor distributions, the trustee or plan administrator’s most essential and productive function is the recovery of assets. We work closely with our professionals and, when necessary, the debtor’s former employees to ensure that recoveries are fair and reasonable.

Examples of asset recovery activities include sales of assets, collections of accounts receivable and tax refunds and the pursuit of litigation claims such as fraudulent and preferential transfers and breach of contract. We actively seek out frequently overlooked and valuable assets such as collateralized self-insurance proceeds and insurance over-payments and find purchasers for remnant assets that are inefficient for a Chapter 11 trust or estate to monetize.

Our Strategy

Our objective is to optimize recoveries for creditors, but there is no single strategy for accomplishing that. Each case and each claim is unique. Based on our considerable experience, we can chart a course that achieves the results creditors deserve.

ATG especially favors negotiation and alternative dispute resolution as an efficient, effective and economical means of resolving litigation claims. However, we are always prepared to pursue claims through conventional litigation if necessary. Our goal is always to maximize creditor recoveries.

Claims Resolution

The size of the creditor claim pool has a direct impact on creditor recoveries. Therefore, claims that are overstated, duplicative or incorrect must be objected to.

As with asset recovery and litigation matters, we always seek fair and efficient resolution of these matters so that the benefit of the claim reduction is not offset by legal fees that are disproportionately high.

Cash Management and Distributions

The trustee or plan administrator has a fiduciary duty to monitor all income and expenditures to ensure the proper administration of the trust’s assets. We track and update bank account balances, prepare financial statements, monitor cash receipts and disbursements, collect taxpayer ID information and distribute1099’s to all claimants receiving distributions from the debtors.

Proxies

Creditors interested in membership on a creditors’ committee sometimes find it difficult to attend the committee formation meeting. ATG is available to participate in formation meetings on the creditor’s behalf.

If the creditor is selected to serve on the committee, we act in accordance with the creditor’s instructions concerning the selection of committee counsel and financial professionals and other matters concerning the operations and function of the committee. Whenever possible, this is done in real-time consultation with the creditor to ensure that their preferences are honored.