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Examiner For Bankruptcy Case Wants To Issue Subpoenas

Posted on in Bankruptcy

Reuters reported a story about mortgage lender Residential Capital Llc's bankruptcy case and the examination around it. Examiner for the bankruptcy case, Arthur Gonzalez, has asked for the authority to issue subpoenas regarding the case and says his review will take 6 months.

U.S. Bankruptcy Judge Martin Glenn issued an order approving the scope of Gonzalez's examination, but the approval does not cover his request for subpoenas. Gonzalez's lawyers said that he needs the authority to issue subpoenas to acquire information that is relevant to the investigation.

The examiner is planning to look at all material agreements between ResCap and Ally Financial Inc, its parent corporation, as well as agreements with Cerberus Capital Management LP, the former majority owner of ResCap. Gonzalez was ordered to investigate the case after a creditor sought an examiner to review pre-bankruptcy transactions between ResCap and Ally Financial for ”potentially improper” transactions. Gonzalez's investigation also includes business decisions by top ResCap officers and its board and the validity of claims by and against ResCap.

Bankruptcy examiners investigate accusations of dishonesty, fraud, incomptence, and mismanagement. A debtor is expected to remain in bankruptcy while an examiner is preparing their report. Gonzalez, the examiner in this case, is a professor at New York University School of Law and a former chief judge of the Manhattan bankruptcy court.

There might be no ”potentially improper” transactions in your case, and the examiner might not be issuing subpoenas, but you should still handle your bankruptcy proceedings with care. These matters require the assistance of a qualified legal professional. Get the help you need with your case and contact a skilled Cook County bankruptcy attorney today.

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