In the Vicinity of Insolvency: Canadian Director Considerations
When a Canadian corporation nears the vicinity of insolvency, which has been described by the Supreme Court of Canada as a deterioration in the corporation’s financial stability, directors or de facto directors should be asking: What is the potential scope of liability? Has it or my duties changed...
Understanding the Role of the Independent Director in Bankruptcy
In recent years, more and more distressed companies have appointed independent directors onto their boards to support the restructuring process, from the initial contingency planning through to plan confirmation and emergence from Chapter 11. Consequently, because it is now more likely that...
Navigating Creditor-on-Creditor Violence:  Lessons from the  Revlon & Serta Cases
Distressed companies must often look for creative ways to raise capital. In recent years, so-called “liability management” or “position enhancing” transactions have gained popularity. In those deals, distressed borrowers typically enlist a majority of existing lenders to amend or work around their...
Restructuring in the Twilight Zone: Directors Duties in Australia
Australian governance imposes three sources of duties on directors—the Corporations Act, other statutory and common law, and equitable duties based. Anglo-Australasian jurisprudence and statutes have developed a series of good faith, skill, and diligence duties that directors must satisfy in making...
How a CRO Can Be a Tool for Winning Friends  & Influencing People
Distressed situations are disruptive. Not only is the company facing financial difficulties—such as declining cash flows and other financial performance metrics, along with potential defaults under debt documents—stakeholders often have lost faith in the current management’s ability to navigate the...
Pressures Continue to Grow in the Ag, Logistics Industries
Engaged, experienced management and board members can make a world of difference when implementing a turnaround or maximizing value for stakeholders. Where directors and officers are not familiar with restructurings or lack an understanding of their roles and personal responsibilities, both the...