Rule 2019 — Disclosures by Groups, Committees, and Other Entities in a Chapter 9 or 11 Case

Fed. R. Bankr. P. 2019

• Source: Federal Rules of Bankruptcy Procedure
• Rule: 2019
• PART X: [ABROGATED]
• Citation: Fed. R. Bankr. P. 2019

Text

(a) DEFINITIONS. In this Rule 2019:
(1) ‘‘disclosable economic interest’’ means any claim, inter-
est, pledge, lien, option, participation, derivative instrument,
or other right or derivative right granting the holder an eco-
nomic interest that is affected by the value, acquisition, or
disposition of a claim or interest; and
(2) ‘‘represent’’ or ‘‘represents’’ means to take a position be-
fore the court or to solicit votes regarding a plan’s confirma-
tion on another’s behalf.
(b) WHOMUSTDISCLOSE.
(1) In General. In a Chapter 9 or 11 case, a verified statement
containing the information listed in (c) must be filed by every
group or committee consisting of or representing—and every
entity representing—multiple creditors or equity security
holders that are:
(A) acting in concert to advance their common interests;
and
(B) not composed entirely of affiliates or insiders of one
another.
(2) When a Disclosure Statement Is Not Required. Unless the
court orders otherwise, an entity need not file the statement
described in (1) solely because it is:
(A) an indenture trustee;
(B) an agent for one or more other entities under an
agreement to extend credit;
(C) a class-action representative; or
(D) a governmental unit that is not a person.
(c) REQUIRED INFORMATION. The verified statement must include:
(1) the pertinent facts and circumstances concerning:
(A) for a group or committee (except a committee ap-
pointed under §1102 or §1114), its formation, including the
name of each entity at whose instance it was formed or for
whom it has agreed to act; or
(B) for an entity, the entity’s employment, including the
name of each creditor or equity security holder at whose
instance the employment was arranged;
(2) if not disclosed under (1), for each member of a group or
committee and for an entity:
(A) name and address;
(B) the nature and amount of each disclosable economic
interest held in relation to the debtor when the group or
committee was formed or the entity was employed; and

(C) for each member of a group or committee claiming to
represent any entity in addition to its own members (ex-
cept a committee appointed under §1102 or §1114), the
quarter and year in which each disclosable economic inter-
est was acquired—unless it was acquired more than 1 year
before the petition was filed;
(3) if not disclosed under (1) or (2), for each creditor or equity
security holder represented by an entity, group, or committee
(except a committee appointed under §1102 or §1114):
(A) name and address; and
(B) the nature and amount of each disclosable economic
interest held in relation to the debtor on the statement’s
date; and
(4) a copy of any instrument authorizing the group, commit-
tee, or entity to act on behalf of creditors or equity security
holders.
(d) SUPPLEMENTAL STATEMENT. If a fact disclosed in its most re-
cent statement has changed materially, a group, committee, or
entity must file a verified supplemental statement whenever it
takes a position before the court or solicits votes on a plan’s con-
firmation. The supplemental statement must set forth any mate-
rial changes in the information specified in (c).
(e) FAILURETOCOMPLY; SANCTIONS.
(1) Failure to Comply. On a party in interest’s motion, or on
its own, the court may determine whether there has been a
failure to comply with this Rule 2019.
(2) Sanctions. If the court finds a failure to comply, it may:
(A) refuse to permit the group, committee, or entity to
be heard or to intervene in the case;
(B) hold invalid any authority, acceptance, rejection, or
objection that the group, committee, or entity has given,
procured, or received; or
(C) grant other appropriate relief.

Advisory Committee Notes

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 26, 2011, eff. Dec. 1, 2011; Apr. 2, 2024, eff. Dec. 1, 2024.)