PUBLISHED ON: December 1, 2003
Creditors wishing to play an active role in the restructuring of a Chapter 11 debtor often are faced with a series of impediments. Management may be incompetent or corrupt. Almost certainly it will be entrenched and many aspects of Chapter 11 that serve to protect a debtor must be overcome.
Accordingly, to disentangle an estate from the clutches of inadequate management, creditors must be aggressive when seeking to advance their vision of how the reorganization process ought to unfold.