A chapter 11 filing is a voluntary action taken by a company that allows a company to continue normal day to day operations while it attempts to “reorganize” its debts. The company, often with the participation of creditors, creates a reorganization plan under which to repay all or part of its debts.

An official committee of unsecured creditors is formed by the Office of the United States Trustee and typically includes from 5 to 9 of the company’s largest unsecured creditors. This committee hires counsel and gathers and reviews information about the debtor company, including the debtor company activities and financial condition, and participates in the development and negotiation of a chapter 11 plan of reorganization.

A bar date notice is sent out to parties who may have a claim against the company requesting that they submit a “proof of claim” by a specific date.

The company has the exclusive right to formulate a plan of reorganization during the first 120 days of the chapter 11 process which details, among other things, how the company intends to pay its creditors. This plan of reorganization is filed with the Bankruptcy Court along with a disclosure statement. The disclosure statement is a document that contains information concerning the assets, liabilities, and business affairs of the debtor company sufficient to enable a creditor to make an informed decision about the debtor’s plan of reorganization. Once the disclosure statement is approved by the Bankruptcy Court, the company sends out the plan of reorganization along with the disclosure statement to all creditors who are entitled to vote on the plan of reorganization.

After the creditors vote on the plan of reorganization, the company seeks Bankruptcy Court approval of its plan of reorganization. If the plan of reorganization is approved or “confirmed” by the Bankruptcy Court, the company will pay the creditors claims pursuant to the plan of reorganization.

The United States Trustee Program is part of the Department of Justice and seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. The primary role of the U.S. Trustee Program is to serve as the “watchdog over the bankruptcy process.” The United States Trustee Program monitors the conduct of bankruptcy parties, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures in order to further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code.

Specific Responsibilities of the United States Trustees include:

• Taking legal action to enforce the requirements of the Bankruptcy Code and to prevent fraud and abuse;
• Ensuring that bankruptcy estates are administered promptly and efficiently;
• Appointing and convening creditors’ committees in Chapter 11 business reorganization cases;
• Reviewing applications for the retention of professionals and ensuring that professional fees are reasonable; and
• Advocating matters relating to the Bankruptcy Code and rules of procedure in court.

Pursuant to Section 1102(a)(1) of the United States Bankruptcy Code, the Official Committee of Unsecured Creditors, generally referred to as the Creditors’ Committee, was appointed effective February 21, 2019. The Committee appointed generally consists of the holders of the largest claims against the debtors. Its primary functions is to be the negotiating body for the Plan of Reorganization as the representatives of the various types of creditors they represent and provide supervision of the debtors in possession.

The parties appointed to the Creditors Committee are:

The Unsecured Creditors’ Committee has hired the following professionals to assist it:

The meeting of creditors under Section 341 of the Bankruptcy Code will be held on April 10, 2019 at 10:00 a.m. (ET) at the Office of the United States Trustee, One Newark Center, 1085 Raymond Boulevard, Suite 1401, Newark, NJ 07102. At this meeting, representatives of the Debtors will appear and submit to an examination under oath. The purpose of the examination is to learn of the liabilities and financial conditions of the Debtors, the operation of their businesses, and the prospects for reorganization.

If Proof of Claim is sent by mail, send to:

Donlin, Recano & Company, LLC
Re: New England Motor Freight, Inc., et al.
P.O. Box 2053
New York, NY 10272-2042

If Proof of Claim is sent by Overnight Courier or Hand Delivery, send to:

Donlin, Recano & Company, LLC
c/o Angeion Group
Re: New England Motor Freight, Inc., et al.
200 Vesey Street, 24th Floor
New York, NY 10281

Please file proof(s) of claim, if any, via US Mail, overnight courier or other hand delivery system, as indicated above. Facsimile and e-mail delivery methods are not acceptable. If you file an originally executed proof of claim and would like a copy of your claim returned to you as proof of receipt, please enclose an additional copy of the proof(s)of claim and a self-addressed postage-paid envelope.

Please click here to download a Proof of Claim Form.