Mr Cooper Group Inc (COOP)

[barefoot123]

http://www.arentfox.com/publications/index.cfm?content_id=1078&fa=legalUpdateDisp

Burden of Proof
Even though Section 1104 of the Bankruptcy Code provides for the appointment of an examiner to investigate allegations of fraud, dishonesty, and gross mismanagement, mere allegations of misconduct will not suffice. There must be a factual basis supporting the need for an independent investigation.

“The appointment of an examiner is a cautious, intermediate procedure which is more economical than the appointment of a trustee.” In re Gilman Services, 46 B.R. at 328.

The Delaware bankruptcy courts historically have refused to treat Section 1104(c)(2) as mandatory. See In re 5A Telecommunications, Inc., Case Nos. 97-2395 to 97-2401 (PJW) (Bankr. D. Del. March 27, 1998). Explicitly or implicitly, these courts have embraced the basic tenet of statutory construction that “shall” can be construed as “may.”

If Judge Mary is a proponent of fair play an examiner will be put in place due to “testing the courts patience” by Rosen and others still hiding information, otherwise she is just another “clubby”.