The appointment of an independent director is a powerful tool for private credit lenders. The appointment is designed to introduce a voice of neutrality and fairness into the board’s decision-making process with the hope and...more
2/28/2025
/ Bankruptcy Court ,
Board of Directors ,
Commercial Bankruptcy ,
Contract Terms ,
Corporate Governance ,
Corporate Restructuring ,
Creditors ,
Debt Restructuring ,
Fiduciary Duty ,
Lenders ,
Limited Liability Company (LLC)
Navigating a successful restructuring requires skill and experience to look around corners, anticipate issues, and take proactive steps to minimize risk and uncertainty. In this alert we highlight one of those risks —...more
As you know from our prior alerts, creditors of borrowers formed as Delaware LLCs (as opposed to corporations) lack standing under Delaware law to sue directors for breaching fiduciary duties even when, to the surprise of...more
4/26/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Breach of Duty ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
DE Supreme Court ,
Delaware ,
Derivatives ,
Fiduciary Duty ,
Fraudulent Transfers ,
Limited Liability Company (LLC) ,
Standing
Creditors of distressed businesses are often frustrated by shareholder- controlled boards when directors pursue strategies that appear to be designed to benefit shareholders at the creditors' expense.
In these...more
9/30/2022
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Breach of Duty ,
Chapter 11 ,
Chapter 7 ,
Creditors ,
DE Supreme Court ,
Delaware ,
Fiduciary Duty ,
Limited Liability Company (LLC) ,
Shareholders
Creditors of distressed businesses are often frustrated by shareholder-controlled boards when directors pursue strategies that appear to be designed to benefit shareholders at the creditors’ expense. In these circumstances,...more
9/6/2022
/ Bankruptcy Code ,
Bankruptcy Court ,
Breach of Duty ,
Chapter 11 ,
Chapter 7 ,
Corporate Counsel ,
Creditors ,
DE Supreme Court ,
Fiduciary Duty ,
Insolvency ,
Limited Liability Company (LLC) ,
Shareholders ,
Solvents