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Disclosure in Chapter 11 Restructurings

Since RTS first entered the restructuring advisory business, we have consistently cooperated with the Office of the U.S. Trustee (the government entity responsible for administration of Chapter 11 cases) on an approach to disclosure that complies with the law and also preserves the confidences of our clients.

We take a thoroughly transparent approach to our disclosure protocol. It has been repeatedly reviewed and approved by our outside counsel, and courts have consistently approved our retention as an advisor on the basis of those filings.

Recently, the Office of the U.S. Trustee has signaled that it has a new interpretation of the Chapter 11 disclosure rules for professionals, representing a shift that could affect all outside restructuring advisors in Chapter 11 cases. To be clear, a future determination by any court that this new interpretation by the U.S. Trustee should prevail is not a judgment of our previous approach to disclosure, which was approved in each instance when our retention was approved by the court.

Many restructuring and turnaround professionals besides RTS have similar approaches to disclosure as RTS. If the new interpretation is enacted, it simply means the rules will change going forward for everyone.

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