Examiners: When 'Shall' May Be A Matter Of Discretion

Law360, New York (June 1, 2010, 1:08 PM EDT) -- A basic premise of the Bankruptcy Code is that the existing management of a company that voluntarily files for Chapter 11 relief remains in possession throughout the reorganization proceeding unless a bankruptcy court finds the existence of extraordinary circumstances warranting the appointment of a trustee. The appointment of a trustee terminates both the debtor’s status as a debtor-in-possession and the debtor’s exclusive periods to file and solicit acceptances of a plan of reorganization.

Cases involving less than extraordinary circumstances may result in a bankruptcy court appointing...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.