When a company faces financial distress, its directors stand at a critical intersection of fiduciary duty and operational urgency.

Tax issues exist in most insolvency cases and the failure to address and plan for these can adversely affect multiple persons involved.

Special committees made up of independent directors can guide a company through the bankruptcy process without accusations of bias.

Insider lease agreements can offer tax advantages and liability protections. They also present ethical and legal challenges, particularly in bankruptcy.

For companies in decline, it is necessary to begin a process of corporate renewal. The success of this effort will be dependent on competent leadership.

Understanding the concepts of ‘turnaround’ and ‘restart’ is essential in determining whether corporate renewal is possible.

Special committees made up of independent directors can guide a company through the bankruptcy process without accusations of bias.

Understand what the “in pari delicto” defense is and how it can be used in a bankruptcy proceeding to protect yourself.

The borrower is an LLC managed by a greedy principal member. The borrower slowly pays the secured creditor and unsecured creditors over years and its business becomes insolvent. The insolvent LLC makes cash distributions to its members, but not to the secured creditors. Is there a law against this sort of behavior?

Examining the “Fiduciary for Hire” and the NRA’s Bad Faith Bankruptcy “When in doubt, mumble, when in trouble, delegate, when in charge, ponder.” – James H. Boren, When In Doubt, Mumble: A Bureaucrat’s Handbook (1972) Business entity debtors in chapter 11 cases come in all shapes and sizes, with varying degrees of integrity and competence in managing those entities. Debtor’s professionals, while arguably also fitting those parameters, must play the cards they are dealt—usually in financially urgent circumstances—and make real-time strategic decisions with real-world consequences. When questions arise as to […]