Stroock Special Bulletin
"Amended Bankruptcy Rule 2019 Goes into Effect"
On December 1, 2011, the controversial amendment to Rule 2019 of the Federal Rules of Bankruptcy Procedure ("Rule 2019") became effective. This Stroock Special Bulletin examines the amended Rule 2019, which broadens the applicability of its disclosure requirements to every group or committee "acting in concert to advance their common interest," and requires each member of that group or committee to disclose the nature and amount of each "disclosable economic interest" such member might have in relation to the debtor. These modified disclosure requirements could impact the manner in which ad hoc committees are formed and operate in chapter 11 cases.