March 29, 2018

Governance Issues of Distressed Companies

Governance Issues of Distressed Companies

March 29, 2018

Challenging governance issues often arise when a company becomes financially distressed. The future existence of the business may be in jeopardy, and the company’s organization as well as its relationships with lenders, vendors and customers may become destabilized. The board of directors and the company’s senior management may find themselves in unfamiliar waters, and the fulfillment of the board’s fiduciary duties may become more complex as the company finds itself in the “zone of insolvency.” To whom are the board’s fiduciary duties owed if the shareholders may be “out of the money,” and how should the board view the relative riskiness of its strategic alternatives? How should it go about fulfilling its duties, and what sorts of assistance should it obtain?

Our panel of governance and insolvency experts will discuss how the thorny issues of distressed companies can be navigated, including some of the most important case decisions, as well as some of the lessons and observations from the 50-state survey.

Panelists:

  • Howard Brod Brownstein, The Brownstein Corporation, Conshohocken, PA
  • Emily Burton, Young Conaway Stargatt & Taylor, LLP, Wilmington, DE
  • K. Tyler O'Connell, Morris James LLP, Wilmington, DE
  • Timothy M. Todd, Jr., Liberty University School of Law, Lynchburg, VA

Presented by: Corporate Governance Committee

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