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

(a) Definitions. In this Rule 2019:

(1) “disclosable economic interest” means any claim, interest, pledge, lien, option, participation, derivative instrument, or other right or derivative right granting the holder an economic 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 before the court or to solicit votes regarding a plan’s confirmation on another’s behalf.

(b) Who Must Disclose.

(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 appointed 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 (except a committee appointed under § 1102 or § 1114), the quarter and year in which each disclosable economic interest 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, committee, or entity to act on behalf of creditors or equity security holders.

(d) Supplemental Statement. If a fact disclosed in its most recent 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 confirmation. The supplemental statement must set forth any material changes in the information specified in (c).

(e) Failure to Comply; 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.