In a recent decision, In re Cinemex Holdings USA, 672 B.R. 53 (Bankr. S.D. Fla. 2025), a Florida bankruptcy court articulated a seven-factor test for determining when “cause” exists to appoint an official committee of unsecured creditors in a Subchapter V Chapter 11 case.
FL Bankruptcy Court Articulates Test for When ‘Cause’ Exists to Appoint An Official Committee of Creditors In Subchapter V Cases
This decision is a significant development for Subchapter V practice as it fills a notable gap in the law where courts and practitioners have had little guidance regarding the circumstances under which a committee should be appointed in Subchapter V cases.
By
Lawrence J. Kotler and Hunter C. Blume
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