Mortgage creditors will get bankruptcy updates

BusinessRockford.com

Creditors in the Commercial Mortgage & Finance bankruptcy case will soon be able to receive quarterly updates on the case.

Judge Manuel Barbosa approved a motion Wednesday by Bradley Koch, attorney for the creditors committee, that included three items:

To send updates to creditors who request the service. Creditors will receive forms in the mail with instructions on how to sign up. The first update would be issued around Jan. 30. Koch said the updates will help the 1,400 creditors stay informed about the case.

To allow the creditors committee, made up of five of the largest creditors and tasked with representing the creditors in the bankruptcy case, to not poll each of the 1,400 creditors on every decision that needs to be made. Koch stressed that he and the committee will continue to answer questions, and creditors will still vote on Commercial Mortgage’s plan to emerge from bankruptcy.

To withhold information deemed confidential or protected by attorney-client privilege, although Koch said such a designation wouldn’t be applied liberally.

Commercial Mortgage & Finance filed for Chapter 11 bankruptcy protection Oct. 8. Creditors who invested in the company’s negotiable promissory notes have found their funds frozen during the case, putting the future of about $60 million in personal assets in question.

Commercial Mortgage & Finance Co. does not own CMF Insurance Agency of Rockford.