C is corrent. The trustee may assign the leases of the landlord-debtor if such action is considered to be in the best interest of the debtor’s estate. The trustee’s duty is to acquire as many assets as possible for distribution to the creditors who filed claims in the bankruptcy proceeding.
A is incorrect. The trustee has the option of performing or rejecting the executory contracts of the debtor. The best interests of the debtor’s estate will dictate what course of action the trustee chooses.
B is incorrect. The creditors do not have the opportunity to elect a trustee until the first creditors’ meeting. An interim trustee, who is appointed by the court, serves prior to the election of the trustee.
D is incorrect. As soon as the order for relief has been entered, the court appoints an interim trustee to serve until the first creditors’ meeting. If the creditors are unable to agree on the selection of a trustee, the court will then appoint a permanent trustee.
|
