Driving the Recovery Bus: Augmenting Creditor Recoveries Through Claims Brought by a Litigation Trustee

The successful pursuit of causes of action by litigation trustees, writes Gordon Z. Novod in the preface to this book, “is an underestimated and unappreciated aspect of modern corporate bankruptcy practice.” Yet, the successful pursuit of causes of action by a litigation trustee is an undervalued asset class that can help augment recoveries to creditors. It can also provide material ‘currency’ to offer unsecured creditors where there are no hard assets from which to pay these creditors under a chapter 11 plan. In that respect, a litigation trust’s successful pursuit of causes of action can help transform the proverbial “medium pizza pie” into a “large pizza pie” with more pizza to go around. This timely book is written not only for litigation trustees, but also for creditors who serve on official committees of unsecured creditors, attorneys and other professionals who frequently represent official committees of unsecured creditors, and others with a general interest in this subject matter.