But is certainly can be a helpful tool in reorganizing a troubled business.
In his article, Bernstein explores some of the strategy considerations involved with such an appointment.
SENATE VERSION OF CHAPTER 11 Chapter 11 is the result of Congress’s decision to create a single reorganization chapter out of the pre-1978 Bankruptcy Act Reorganization Chapters X, XI, and XII.
Chapter X involved the reorganization of corporations whose creditors included holders of publicly issued debt securities.
13, 2014), the United States Court of Appeals for the Second Circuit issued a decision that could have far-reaching effects on how liquidating Chapter 11 bankruptcy cases will be handled in the future.
Appointing a Chapter 11 trustee is certainly not a panacea, according to author Robert Bernstein.
In Bond, the court approved the creation of a liquidating trust in connection with the bankruptcy cases of PT-1 Communications Inc.
The facts of this case are relatively straightforward.
The trustee, therefore, essentially displaces the management that got the debtor in its financial predicament.Law360, New York (September 4, 2014, AM EDT) -- In the case of United States of America v. and its related subsidiaries (the "debtors") pending...He also looks at the advantages and disadvantages of taking this action.Seeking the appointment of a Chapter 11 trustee is another possible response.
That chapter provided for the mandatory appointment of a trustee if liquidated and non-contingent debt was $250,000 or more.