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Fiduciary Duties / Directors

NRA Bankruptcy

Alternative Debtor Management? Discharge Your Fiduciary Duty at $1,155 Per Hour!

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 […]


Building a Board of Directors

Recruiting Post-Bankruptcy Board Directors in the Pandemic Aftermath

How to Develop Board Committees Equipped for a New Landscape As Covid induced bankruptcies proliferate, creditors who become stockholders will need to focus not only on the future financial health of the reorganized company, but also on its overall governance. The new post-pandemic landscape will be revolutionary, not evolutionary. It will demand new owners and […]


Bankruptcy Litigation Funding

Third-Party Litigation Funding (TPLF) and Issues It Creates In Bankruptcy

Investing in Litigation – The Bankruptcy Code and Third-Party Funding Third-party litigation funding (“TPLF”) is, beyond a doubt, here to stay. In bankruptcy cases, TPLF arises in a number of contexts. First is the TPLF as a pre-petition secured or unsecured creditor—i.e., the TPLF source funded litigation and thereby acquired property rights in litigation proceeds […]


Corporate Restructuring Professional

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 […]


Special Committees in Bankruptcy

The Independent Director Role in Optimizing Corporate Workouts and Bankruptcy Outcomes

How Can Special Committees Influence Your Bankruptcy? The appointment of independent directors may benefit a financially distressed business throughout its restructuring process, including during a bankruptcy case. An outside voice can guide a company through the process while fending off claims of conflict of interest by the court. What is an Independent or Non-Executive Director? […]


There Ought to Be a Law, and There Is: When the Insolvent LLC’s Manager Distributes Cash But Does Not Pay Creditors

Editor’s Note: The scenario discussed below was present in many respects in Vieira v. Harris (In re JK Harris & Co. LLC), 512 B.R. 562 (Bankr. D. S.C. 2012). Let us suppose that a provider of tax resolution services to a large number of customers borrows cash secured by accounts receivable (the cash borrower can […]


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