Business Bankruptcy
The Chief Restructuring Officer (CRO): From Restructuring to Stakeholder Management, They Can Do It All
An Introduction to the Distressed Company’s Superman: The Chief Restructuring Officer The role of a Chief Restructuring Officer (“CRO”) is approximately four decades old. While still a somewhat new role in the 1990s, CROs are now ubiquitous in the restructuring community. Todd Zywicki, a George Mason law professor who specializes in bankruptcy law, traces the […]
Dealing with Corporate Distress 06: 4 Basic Chapter 11 Concepts to Know Before We Go any Further
The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In the last two installments of this series, we introduced you to things a company should consider before deciding whether to file chapter 11, and a timeline for understanding how a “typical” chapter 11 case proceeds. In this quick little ditty, we want to make sure […]
Can an Executive Exert Control of Corporate Attorney-Client Privilege?
Does Corporate Counsel Represent the Executive or the Company? The F-Squared Investments Bankruptcy is a Warning for Executives [Editor’s Note: Russell C. Silberglied ([email protected]) is a director of Richards, Layton & Finger, P.A. The views expressed in this article are those of the author and not necessarily those of Richards, Layton & Finger or its […]
How to Assess 3 Potential Preference Action Defenses
Businesses Have Options for Defending a Preference Action. Here’s How to Build the Right Defense. Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company has already taken a loss on the debtor’s accounts. Your initial response is anger […]
From Penthouse to Ground Floor: The Penthouse Magazine Bankruptcy
Creative Destruction and an Inevitable Fall: What Can We Learn From the Penthouse Magazine Bankruptcy? Penthouse International, publisher of Penthouse Magazine, sold for $11.2 million in June of 2018. The company was worth about $700 million (adjusted for inflation) at its height. The latest Penthouse Magazine bankruptcy highlights just how far Penthouse has fallen, and […]
Incorporation by Reference in UCC-1 Filings
How Brevity in Financing Statements Can Lead to Insufficient Collateral Descriptions Our fast-paced society, coupled with the tendency for people to use shorthand in communications by emails and Twitter, influences everyone to look for ways to save time and be less verbose. When preparing and filing a UCC-1, however, brevity can be the filer’s enemy. […]
Law Firm Bankruptcies: The “Unfinished Business” Doctrine and the Jewel Waiver
The Finishing of the “Unfinished Business” Doctrine and the Jewel Waiver One of the interesting aspects of business bankruptcy cases is that both the businesses and the issues their bankruptcy proceedings present can differ so much. In recent years, for example, we have seen department stores (Macy’s, Federated), toy retailers (Toys R Us), bookstore chains […]
What Distressed Businesses and Their Counsel Should Know About the Consolidated Appropriations Act 2021 and Its Effect on the Bankruptcy Code
What is the Consolidated Appropriations Act? Congress passed the Consolidated Appropriations Act, 2021 on December 21, 2020, and President Trump signed the massive act into law six days later, when it became effective. The act includes several changes to title 11 of the United States Code, which is usually called the “Bankruptcy Code,” and most […]
Dealing with Corporate Distress 05: The Lifecycle of a Chapter 11 Case
The ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency [Authors’ Note: before going any further, read Installment 4: Chapter 11—If You’ve Seen One, You’ve Seen Them All. While you can generally read any installment in this series in any order or even by itself, this one is an exception. . . ] And now, […]
Lender Liability Claims are Alive and Well: A Case Study
Lender Liability Law Protects Distressed Borrowers from Unfair Practices The relationship between a lender and borrower can be complex. The borrower wants capital to run and grow its business, and the lenders want to earn a return and eventually get their principal back. If the borrower complies with the terms of the loan, all is […]