Cornerstone Ministries Investments U.S. Trustee appeals examiner ruling

By Caroline Salls

Pittsburgh, June 23 - Cornerstone Ministries Investments, Inc.'s U.S. Trustee appealed a court ruling denying his motion for appointment of an examiner to investigate allegations of misconduct and mismanagement by current and former management, according to a filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

As previously reported, although judge Robert E. Brizendine denied U.S. Trustee Donald F. Walton's examiner motion, he did schedule a June 30 show cause hearing on the possibility of appointing a Chapter 11 trustee to oversee Cornerstone's bankruptcy case.

According to Brizendine's June 12 ruling, the issues presented by Walton as grounds for examination mirror those already being examined by the company's official committee of unsecured creditors.

Brizendine also said allowing the examination would burden Cornerstone's estate with additional costs and expenses.

Cornerstone is a Cumming, Ga., company that offers financial assistance to churches and faith-based organizations that offer senior housing, student housing and daycare facilities. The company filed for bankruptcy on Feb. 10, and its Chapter 11 case number is 08-20355.

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