The U.S. Trustee assigned to the Global Aviation Holdings case filed with the U.S. Bankruptcy Court an objection to Debtors’ motion for entry of an order converting the Chapter 11 cases to cases under Chapter 7 of the Bankruptcy Code. The Trustee asserts, “The U.S. Trustee requests that the proposed form of order attached to the Motion be modified to include several changes: Paragraph 7 of the order, which purports to relieve all current officers and directors of the Debtors from their duties as officers and directors, should be stricken from the order. If officers and directors seek to be relieved of their duties, such action is not appropriate through a conversion order, but should be accomplished via resignation or other corporate action. In addition, the U.S. Trustee requests that the following language be added to the order: ‘A representative of the Debtors and, if requested by the Chapter 7 trustee, counsel to the Debtors in these Chapter 11 cases, shall appear at the first meeting of creditors after conversion of the Debtors’ cases to chapter 7 pursuant to sections 341(a) and 343 of the Bankruptcy Code, and such representative shall be available to testify at such meeting.’ Finally, paragraph 8 of the proposed order should be removed as the effective date of the order should be the date the order is entered, not a future date.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.