Lieberman Comments on Giuliani Bankruptcy Issues
Pryor Cashman Partner Seth Lieberman, chair of the Bankruptcy, Reorganization + Creditors’ Rights Group and co-chair of the Corporate Trust Practice, spoke with Law360 about former New York City Mayor Rudy Giuliani’s Chapter 11 bankruptcy.
In “Why Giuliani's Creditors Say He Can't Run His Own Ch. 11,” Seth explains the potential role of a trustee in a bankruptcy like Giuliani’s:
Seth Lieberman, chair of Pryor Cashman LLP’s bankruptcy and reorganization practice group, said judges won’t often appoint a trustee to take control of a debtor’s estate unless there’s overwhelming evidence that, without one, a Chapter 11 case will go south.
“In my experience, Chapter 11 trustees are most often appointed when the debtor’s conduct has called into question its trustworthiness during the Chapter 11 case itself,” said Lieberman. “Rather than the discretion typically afforded a typical debtor-in-possession, a Chapter 11 trustee severely limits the debtor’s ability to control its own Chapter 11 case and its bankruptcy fate.”
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