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Roles in a restructuring, explained.
Bankruptcy and insolvency matters involve a cast of specialized roles. Here is who does what, and where Stephanie can help.
General information only. It is not legal advice and does not create an attorney–client relationship.
The process
The two most common paths through U.S. bankruptcy.
Chapter 11
A form of U.S. bankruptcy that lets a business keep operating while it reorganizes its debts under a plan that creditors vote on and the court confirms.
Chapter 7
A liquidation. A court-appointed trustee collects and sells the debtor’s non-exempt assets and distributes the proceeds to creditors in the order of priority the Bankruptcy Code sets.
Court-appointed & independent roles
Neutral parties who take control, investigate or carry out a plan.
Bankruptcy trustee
An independent fiduciary who administers a bankruptcy estate: gathering assets, investigating the debtor’s affairs, pursuing claims and making distributions. A trustee is appointed in every Chapter 7 case, and in Chapter 11 only in specific circumstances.
Stephanie served as a bankruptcy trustee for a decade →Receiver
A neutral party appointed by a court, usually outside bankruptcy, to take control of property or a business, preserve its value and, where ordered, sell or wind it down.
Stephanie serves as a receiver →Examiner
An independent party a bankruptcy court may appoint in a Chapter 11 case to investigate specific issues, such as allegations of fraud or mismanagement, and report its findings without taking control of the business.
Related: Stephanie’s work as an independent investigator →Plan administrator
The person charged with carrying out a confirmed plan after a case concludes: liquidating remaining assets, resolving claims and making distributions under the plan’s terms.
Stephanie serves as a plan administrator →Independent fiduciary
A neutral party engaged to manage assets, obligations or transactions when the parties need someone free of conflicts, for example during a restructuring or wind-down.
Stephanie serves as an independent fiduciary →Advisors & neutrals
The specialists parties bring in for judgment, testimony or resolution.
Bankruptcy mediator
A neutral who helps parties to a bankruptcy dispute negotiate a resolution, often faster and at lower cost than litigating it. Many bankruptcy courts, including the Southern District of New York, run mediation programs.
Stephanie is a mediator for the S.D.N.Y. Bankruptcy Court →Indenture trustee
A financial institution appointed under a bond indenture to act on behalf of bondholders. In a restructuring it enforces bondholders’ rights, files claims and often takes a central role in negotiations. Independent shadow counsel can advise it alongside its primary counsel.
Stephanie serves as shadow counsel to indenture trustees →Expert witness
A specialist retained to give the court opinion testimony on questions beyond a lay witness’s knowledge, such as industry practice or the conduct of a fiduciary.
Stephanie serves as an expert witness →Independent director
A board member without ties to management or major stakeholders, often added to a distressed company’s board to oversee restructuring decisions and conflicted transactions.
Stephanie serves on boards →Fractional or interim counsel
Senior legal support engaged part-time or for a defined period, often while an organization is in transition.
Stephanie serves as interim counsel →