World Library  
Flag as Inappropriate
Email this Article

Chief restructuring officer

 

Chief restructuring officer

A chief restructuring officer (CRO) is a senior officer of a company given broad powers to renegotiate all aspects of a company’s finances to deal with an impending bankruptcy or to restructure a company following a bankruptcy filing. The use of CRO’s, who usually have an expertise in the field of business in which the company operates, has been increasing in popularity since the 1990s. CROs are sometimes seen as an alternative to using a Trustee in bankruptcy in a reorganization bankruptcy, because the trustees may not be knowledgeable in field of business conducted by the company.

Further CRO’s give the company management and creditors more of say in the running of a company than a trustee is required to do so. CRO’s have sometimes been compared to “turn around” consultants although the CRO differs from a turn around consultant in that the CRO is an official of the company and has executive power.[1]

While CRO’s officially report to the company and its board of directors, they are considered to have greatly strengthened the hand of creditors since the CRO can make executive decisions following a direct meeting with the creditors.[1] On occasional instances, the CRO can oust the chief executive officer (CEO) or President of the company, as happened in 2012 when Gregory F. Rayburn replaced Hostess Brands CEO Brian Driscoll as CEO a month after being appointed CRO.[2]

References

  1. ^ a b "Are CROs More Powerful than Turnaround Consultants? Creditors Drive Trend Toward New Title — Turnaround Management Association". Turnaround.org. 2006-10-01. Retrieved 2012-11-20. 
  2. ^ Kary, Tiffany (2012-03-09). "Hostess CEO Driscoll To Quit Bankrupt Twinkie-Maker". Bloomberg. Retrieved 2012-11-20. 
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.