Editors’ Note: In March 2026, the Chapter 7 trustee for Polished.com sued former chief executive Albert Fouerti and 12 other former officers and directors in the United States Bankruptcy Court for the District of Delaware, seeking more than $200 million. At the center of the complaint is one payment: the $180 million Polished sent to Fouerti when it closed its $222 million acquisition of Appliances Connection in June 2021. The trustee says the company did not get anywhere near what it paid for. This article traces the full record behind […]

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?