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2021 Stroock Bankruptcy Guide

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144 (v) filing a plan or a report as to why the trustee will not file such a plan or recommending conversion or dismissal of the bankruptcy case; (vi) furnishing information for any year for which the debtor has not filed a tax return to the taxing authority with whom such return was to be filed; and (vii) filing any necessary post-confirmation reports. 11 U.S.C. § 1106(a). Following entry of an order for the appointment of either a Chapter 11 trustee or an examiner (discussed below), the U.S. Trustee appoints a disinterested person to such position. If a party in interest makes a request for an election of the Chapter 11 trustee within thirty days of the court's order for the appointment of a trustee, however, the U.S. Trustee must convene a meeting of creditors for the purpose of electing a Chapter 11 trustee. 11 U.S.C. § 1104(b)(1). Such election of a Chapter 11 trustee is conducted in the same manner as an election for a Chapter 7 trustee (discussed below in Chapter VII.B.1.). If the court does not appoint a Chapter 11 trustee, on request of a party in interest or the U.S. Trustee, and after notice and a hearing, the court is required to appoint an examiner to conduct an investigation of the debtor, including an investigation of any allegations of fraud, dishonesty, incompetence, misconduct or irregularity in the management of the debtor's affairs by current or former management, if (i) such appointment is in the best interests of creditors, equity security holders and other interests of the estate or (ii) the debtor's fixed, liquidated, unsecured debts, other than debts for goods, services or taxes, or owing to an insider, exceed $5,000,000. 11 U.S.C. § 1104(c). There is a split in authority over the seemingly mandatory appointment of an examiner in cases in which a debtor's fixed unsecured debts exceed $5,000,000. See In re Residential Capital, LLC, 474 B.R. 112, 115-17 (Bankr. S.D.N.Y. 2012). There are a

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