Federal Judge Upholds Decision Not to Appoint Trustee in G-I Bankruptcy

NEWARK, N.J. - A federal district court judge has affirmed a bankruptcy judge's decision not to allow for the appointment of trustee in the G-I Holdings Chapter 11 proceedings. In re: G-I Holdings, Inc., et al., No. 03-842 (D. N.J.).

In a decision issued June 27, Judge William G. Bassler of the U.S. District Court for the District of New Jersey ruled that there was not enough clear and convincing evidence to indicate that the appointment of a trustee to facilitate the debtor's reorganization was necessary. The judge further noted that the mere existence of adversary proceedings, including a pending …