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ARTICLE · 29 FEBRUARY 2024

FTX: Forcing The Examiner Mandate In The Third Circuit

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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It is a rare occasion that one can be assured with certainty that, if they file a motion with a bankruptcy court, it will be granted.

United StatesInsolvency/Bankruptcy/Re-Structuring
Dallas G. Taylor
Dallas G. Taylor
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It is a rare occasion that one can be assured with certainty that, if they file a motion with a bankruptcy court, it will be granted. But, in the Third Circuit, that is exactly what will happen if a creditor or other party in interest moves for an examiner to be appointed under Section 1104(c) of the Bankruptcy Code. Once considered to be within the discretion of a bankruptcy court “as is appropriate,” the appointment of an examiner is now guaranteed if the statutory predicates are fulfilled according to the Third Circuit Court of Appeals. This development is a marked departure from the status quo and has the potential to change an already litigious chapter 11 landscape. 

Examiners Generally

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