Judge Strips GSC Execs Of Ch. 11 Control

Law360, New York (January 6, 2011, 5:51 PM EST) -- A bankruptcy judge has allowed for the appointment of an independent trustee in the Chapter 11 case of investment firm GSC Group Inc., addressing concerns from minority lenders about company insiders making sweetheart deals for themselves with a proposed asset buyer.

Judge Arthur J. Gonzalez filed a brief order in the U.S. Bankruptcy Court for the Southern District of New York on Wednesday, noting his approval of a motion from a non-controlling lender group that sought to have an independent trustee oversee the case.

Much of...
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