Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Debtor v. UST: The Battleground Over Retention of a Chief Restructuring Officer

By Mark S. Melickian and Jack O'Connor
November 01, 2018

Nearly two decades ago, a dispute between J. Alix & Associates and the Executive Office of the United States Trustee (EOUST) over J. Alix's proposed role in two turn-of-the-century restructuring cases (Harnischfeger Industries, Inc. and Safety-Kleen Corp.) led to détente, and a procedure that has generally governed the employment of chief restructuring officers (CRO) in bankruptcy cases since that time.

The "J. Alix Protocol," as it is known, does not have the force of law; rather, it is a set of guidelines by which the UST will not object to retention of a CRO under 11 U.S.C. §363(b), which allows the debtor to enter into transactions "outside the ordinary course of business" with court approval. The compromise struck in the Protocol is the incorporation of certain of the Bankruptcy Code's conflicts of interest, disclosure, and compensation guidelines applicable to case professionals (e.g., attorneys and financial advisors). See, 11 U.S.C. §Section 327(a).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.