Both secured and unsecured creditors need competent counsel immediately, as corporate bankruptcy procedures move quickly. Orders appropriately named “First Day Orders” may be issued on the very first day a bankruptcy is filed, and may affect creditors rights, including maintenance of banking and financial arrangements, insurance coverage, utility payments, and employment of professionals. A summary of the Yellow Bankruptcy First Day Orders is provided here.
Additionally, large unsecured creditors must be fully informed of their positions as they may find themselves invited to serve on the Official Committee of Unsecured Creditors. Proofs of claim must be timely and comprehensively filed and the potential for other related litigations must be examined.