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New Bankruptcy Rule 2019: Mandatory Disclosures for Ad Hoc Committee Members

New Bankruptcy Rule 2019: Mandatory Disclosures for Ad Hoc Committee Members

Overview


The United States Supreme Court recently submitted to Congress an amendment to Bankruptcy Rule 2019 dealing with disclosure by groups of hedge funds and other distressed investors in reorganization cases. Unless Congress blocks its passage, which is unlikely, the amendment will become effective on Dec. 1, 2011. The new rule streamlines and clarifies what had become a frequently litigated disclosure process.