In April 2011, the Supreme Court of the United States adopted a controversial amendment to Rule 2019 of the Federal Rules of Bankruptcy Procedure. The purpose was to clarify the disclosure required of certain groups consisting of multiple creditors or equity security holders acting in concert in Chapter 9 or Chapter 11 bankruptcy cases. The amendment became effective on Dec. 1, 2011. It governs in all bankruptcy cases commenced after that date as well as “insofar as just and practicable” in all pending proceedings.
Events Leading to the Amendment
Prior to Dec. 1, 2011, Rule 2019 required any “entity or committee” representing more than one creditor or equity security holder to file a verified statement disclosing information that generally included: (1) the nature and amount of the claim or interest held by each such entity or committee; (2) the date the claim or interest was acquired (unless acquired more than one year before the bankruptcy filing); (3) the amount paid for the claim or interest; and (4) “any sales or disposition of the claim or interest.”
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