Cornerstone Ministries' creditors committee granted approval for examination

By Jennifer Lanning Drey

Portland, Ore., June 4 - Cornerstone Ministries Investments, Inc.'s official committee of unsecured creditors obtained court approval to examine individuals it believes are related to or have significant business relationships with Cornerstone, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Georgia.

The committee requested approval to examine individuals connected with business entities including consultant eNable Business Solutions and Cornerstone subsidiaries Heron Lake LLC and Cornerstone Group Holdings, Inc.

The committee said previously that it is now shifting its work from trying to understand the structure and operation of Cornerstone's business to considering the appropriate structure for a plan of reorganization or liquidation. Examining the individuals and businesses is critical to plan structuring considerations, the committee said.

As previously reported, Cornerstone's U.S. Trustee has separately asked the court to appoint an examiner to investigate allegations of misconduct and mismanagement by current and former management.

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. Its Chapter 11 case number is 08-20355.

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