On November 27, 2024, Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, confirmed the Joint Combined Bankruptcy Plan and Disclosure Statement of Acclivity Ancillary Services, LLC and Acclivity West, LLC (Case No. 24-90001).
Marc Schwartz, CEO and founder of Schwartz Associates, LLC, was engaged as Chief Restructuring Officer (“CRO”) by the debtors three months prior to their bankruptcy filings and served in this capacity throughout the bankruptcy proceedings. As part of the confirmed Plan, and pursuant to the Court’s order, the CRO was designated as an “Exculpated Party” alongside the debtors, the Creditors’ Committee, and each of its members. Consequently, Mr. Schwartz is protected under the exculpation provisions outlined in paragraph VI.C of the Plan.
Mr. Schwartz’s responsibilities, as defined in his engagement letter, the related application for his appointment as CRO, and the court order authorizing his employment, were closely aligned with the duties of a bankruptcy trustee under the Bankruptcy Code. This alignment was a key factor in the Court’s determination to extend exculpation to the CRO.
The confirmation of the Plan and the inclusion of the CRO as an Exculpated Party underscore the significance of the CRO’s role in the restructuring process and affirm the Court’s recognition of his adherence to fiduciary responsibilities throughout the bankruptcy case.
