To Trade or Not to Trade: Can Claim Traders Sit on Creditors’ Committees and Trade in Securities of the Debtor?
By Anna C. Palazzolo

Oftentimes in large chapter 11 cases the Office of the United States Trustee (the “U.S. Trustee”) will appoint claim traders to the committee of unsecured creditors, and such members may seek to continue to trade in the debtor’s securities. Such appointment may seem to run afoul of committee member fiduciary duties to the unsecured creditors they represent, however the U.S. Trustee, the Securities and Exchange Commission and bankruptcy courts have upheld the right of claim traders to serve on creditors’ committees and trade in the debtor’s securities, so long as certain precautions are taken to preserve the committee member’s fiduciary duties.
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Debt For Equity: Is It Time To Rethink The Paradigm?
By Michael J. Venditto

Predicting trends, particularly in unsettled times, is a perilous enterprise. But nothing is more risky than slavish adherence to outmoded concepts. Prudence requires that even the most basic principles be reviewed periodically to ensure that they are still valid. This article challenges bankruptcy professionals to reevaluate one of the touchstones of plan formulation in light of some recent business trends: the debt for equity exchange.
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ASM Committee Meetings to Focus on Cutting-edge Business, Legal Issues

The Public Companies and Claims Trading Committee will address, "Cutting Edge Business and Legal Issues Concerning the Buying and Selling of Trade Receivables and Distressed Non-Public Paper," April 15-18 in Washington, D.C., at the 22nd Annual Spring Meeting. Business topics will include the economic analysis and modeling used in buying and selling claims and the claims trading market. Legal issues will include competing assignments, intervening acts and conduct between commitment and funding, Section 502(d) limitations, preference and allowance of claims and standardization of documentation. The panelists will include Andrew I. Silfen of Arent Fox PLLC, Matt A. Gold of Argo Partners and Joe Myers of the Clear Thinking Group Inc.

There is still plenty of time to register for the 2004 Annual Spring Meeting. This year's program will offer up to 19 hours of CLE/CPE credit and a wide array of bankruptcy-related topics. Register today online!