Balloting Agent
A Balloting Agent is a bankruptcy service provider authorized to distribute or process Chapter 11 plan ballots, apply court-approved tabulation procedures and report voting results for eligible claims and interests.
How it works
Balloting functions are often performed by the same firm serving as Claims and Noticing Agent, although local rules can describe the roles separately. Court-approved solicitation procedures determine how ballots, master ballots, electronic votes, duplicate submissions, transferred claims and late votes are handled. The Balloting Agent implements those rules rather than inventing its own voting standard.
The role is procedural and data-intensive
The agent receives votes, checks them against authorized voting records and applies the procedures established by the court.
One firm can perform multiple agent roles
Local rules can permit one entity to serve as noticing, claims and balloting agent when authorized.
The agent does not set legal voting thresholds
Section 1126 and the court’s Solicitation Procedures Order govern Class Acceptance; the agent performs the calculation.
Disputed ballots can require court rulings
Questions involving late ballots, transferred claims, duplicate votes or temporarily allowed claims can move beyond administrative processing.
Worked example: duplicate ballot
A creditor submits an electronic rejection and later sends a paper acceptance. The agent applies the order’s duplicate-ballot rule rather than choosing whichever ballot it prefers.
Why the declaration matters
A balloting declaration can show acceptance percentages, rejected ballots, voting amounts and disputed submissions. Those figures often feed into confirmation findings.
Common mistakes
Assuming the Balloting Agent determines legal eligibility independently; treating its report as immune from objection; confusing balloting with distribution; and assuming one national tabulation protocol applies.
Example
A court-approved order authorizes an agent to distribute ballots, receive electronic and paper votes, reconcile ballots against the claims register, tabulate each voting class and file a voting declaration before the Confirmation Hearing.
Example
A court-approved order authorizes an agent to distribute ballots, receive electronic and paper votes, reconcile ballots against the claims register, tabulate each voting class and file a voting declaration before the Confirmation Hearing.
Professional note
Voting-agent reports are highly important evidence, but the court retains authority to resolve disputes over eligibility, Vote Designation, temporary allowance and contested tabulation rules.
Related terms
- Class Acceptance
Class Acceptance is the Chapter 11 voting determination under Section 1126 that establishes whether a class of claims or interests has accepted a proposed plan based on the votes actually cast by eligible holders.
- Solicitation Procedures Order
A Solicitation Procedures Order is a Chapter 11 court order approving the mechanics for distributing plan materials, soliciting and tabulating votes, setting deadlines, handling voting eligibility and giving notice of confirmation.
- Plan Ballot
A Plan Ballot is the written or court-approved electronic voting instrument used by an eligible creditor or equity holder to accept or reject a Chapter 11 plan and, where authorized, make related elections.
- Claims and Noticing Agent
A Claims and Noticing Agent is a court-authorized bankruptcy service provider retained under 28 U.S.C. §156(c) to perform specified claims-processing, noticing and related administrative functions that would otherwise burden the bankruptcy clerk.
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