When a company undergoes corporate reorganization to stabilize its business and avoid bankruptcy, two key officials will be appointed by the court to oversee the process: a Trustee and an Examiner.
The trustee is in charge of running the company and developing the restructuring plan. Usually the trustee will be a bankruptcy professional but he or she can also be a member of the corporation’s management.
Examiners are not always appointed in corporate reorganization cases but their role is to perform specific tasks or conduct investigations. Examiners are most common in reorganizations where a manager from the company has been appointed as the trustee. In these circumstances the neutral examiner can oversee the management of a trustee who may not be completely neutral. Creditors’ interests are supposed to be represented by the examiner but the examiner does not have a duty to report to the creditors outside of a few key progress reports relating to the reorganization plan.
If you feel that your interests are not being accurately represented by an examiner, please contact our office to discuss your options and rights.