It is always helpful to understand what is going on in the mind of the person who is going to hire you as counsel. Court-appointed fiduciaries come in all shapes and size, and I’ll begin by explaining some of the differences.
First, a Chapter 11 trustee is most typically appointed to take on the duties and retain the powers of the chief executive officer of an ongoing operating company. In other words, the Chapter 11 trustee is responsible for overseeing and making sure that the daily operations of the business are being handled in such a way as to reach an ultimate plan of reorganization that will maximize value for creditors. While it is true that there are many reasons for a receiver to be appointed, for the purposes of this article, it is assumed that a receiver has these same duties and responsibilities but has been appointed in a state or non-bankruptcy federal court. Both are operating fiduciaries.