Official Committee of Unsecrured Creditors
Liquidating Chapter 11
MainStream was engaged by the Official Committee of Unsecured Creditors through the Federal Bankruptcy Court in Northern Georgia to manage the claim payments for a large and complex Chapter 11 liquidating bankruptcy filing.
The total number of unsecured parties of which claim payments were to be made was 484 broken down into five specific categories. Two of the categories were made up of former employees of the debtor (bankrupt company) for which state and federal withholdings had to be calculated and tax payments issued for each individual. The total amount of claim payments authorized was $29,754,639. Along with locating each of the affected parties, MainStream assumed responsibility for issuing and filing W-2’s to the more than 230 former employees and 1099’s to each of the professionals and contractors.
The entire process from the date of Court approval through final reconciliation took approximately 90 days. As the debtor had been out of business for more than 2 years when the claims were authorized, former employees had moved and businesses due payments had been sold or had gone out of business. However of the 484 claimants, MainStream was able to locate and provide settlements for 96%.