A chief restructuring officer, or “CRO” is often a senior member of a restructuring firm appointed by stakeholders and given broad powers over the company’s finances and operations to restructure the debtor’s balance sheet, operations, or both.
A CRO may be specifically appointed for the purpose of managing a company’s affairs in a chapter 11 bankruptcy proceeding. In some chapter 11 cases, a CRO may be seen as an alternative to appointing a bankruptcy trustee to take over the debtor’s business, because the CRO is more directly knowledgeable about the company’s business, industry, and financial affairs.
Many CROs are turnaround advisors. But unlike outside turnaround advisors hired by a company on a consulting basis, CROs serve as officers employed by a company, with direct executive and decision-making authority to manage the company’s business.