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FREQUENTLY ASKED QUESTIONS FOR VENDORS
 
Updated April 19, 2016

FEGS Health & Human Services filed for relief under Chapter 11 of the U.S. Bankruptcy Code on March 18, 2015. We understand and regret the unavoidable challenges the filing can create for many of our vendors and suppliers with respect to outstanding amounts owed for goods and services provided prior to March 18, 2015.

1. What is the definition of “pre-petition”?
  • Pre-petition means before the filing of the petition commencing the Chapter 11 case. In this case, amounts owed for goods received or services provided before March 18, 2015 are considered “pre-petition.”
2. What is the definition of “post-petition”?
  • Post-petition means on or after the filing of the petition, or in this case on or after March 18, 2015. Amounts owed for goods received or services provided on or after this date are considered “post-petition.”
3. Will vendors be paid for goods and services they provide to FEGS post-petition?
  • We expect that vendors will be paid in full under normal terms for post-petition invoices for goods and services provided on or after March 18, 2015.
  • Going forward, please continue to submit bills as you normally have to FEGS’ Accounts Payable department. You can direct questions to vendor@fegs.org.
4. Why should I continue as a vendor doing business with FEGS now that you are in Chapter 11?
  • Goods and services received after the filing can and will be paid for in the ordinary course of business; in fact, the Bankruptcy Code gives priority status to such payments.li>
5. Will vendors be paid for goods and services they provided to FEGS before the filing date
  • Federal law prohibits payments for goods and services received before the filing until a plan is accepted by the creditors and approved by the court. Claims will then be paid to the extent provided in, and pursuant to the terms of any such plan.
  • Vendors who have not received payment for services or goods provided prior to March 18, 2015 will need to submit a proof of claim for unpaid pre-petition goods or services.  All vendors and suppliers who are owed money for goods and services delivered or provided prepetition will receive notice of the procedures and deadlines for filing claims.
  • Please note that if you have received a check from FEGS as payment for pre-petition services and you have not yet cashed the check, you will now be unable to cash this check due to the bankruptcy filing.  You will need to submit a claim for these expenses just as you would for any other pre-petition expenses.  We apologize for the hardship and inconvenience that this may cause.
  • As required, FEGS has obtained an agency to serve as our Claims Agent.  The role of the Claims Agent is to manage the claims process and to communicate with those  who may be owed money by FEGS.  The Claims Agent is Rust Omni.  You can contact Rust Omni at www.omnimgt.com/FEGS or 866-205-3142.
6. Can a vendor under contract with FEGS stop providing goods and services now that FEGS has filed for Chapter 11?
  • FEGS existing contracts are enforceable post-petition and vendors must continue to perform under these agreements so long as they are paid. In fact, the bankruptcy code prohibits a vendor from unilaterally cancelling a contract absent Bankruptcy Court approval.
7. Will you attempt to negotiate new terms now that you have filed for Chapter 11?
  • No. We will continue to purchase goods and services just as before, on the same terms and conditions as before.
8. Why did FEGS file for Chapter 11?
  • The Company determined that the Chapter 11 filing was necessary step in order to be able to continue implementing an orderly transition of FEGS’ programs to other organizations.
9. Is FEGS continuing to do business?
  • Yes. We are continuing to serve and meet the needs of our clients as we implement an orderly transition of our programs to other organizations.
10. What is the case number?
  • FEGS has filed for Chapter 11 relief in the U.S. Bankruptcy Court for the Eastern District of New York. Case no. 15-71074
11. Who is FEGS’ legal counsel?
 

Garfunkel Wild

11 Great Neck Road 6th Floor Great Neck, NY 11021

516-393-2200

http://www.garfunkelwild.com/index.htm