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Financial Distress Fiduciary Duty

Offit Kurman

Director & Officer Duties: What Every Leader Should Know

Offit Kurman on

Earlier this year, the FDIC, acting as receiver for Silicon Valley Bank (“SVB”), filed a breach of fiduciary duty lawsuit against six officers and eleven directors of the bank. The FDIC alleged that these individuals ignored...more

Woodruff Sawyer

Managing Through Financial Distress: The Board’s Oversight Role and Protecting Against Litigation

Woodruff Sawyer on

When a public company faces significant financial challenges and uncertainty, the pressure on management teams and boards of directors to make the “right” decisions intensifies. If those financial challenges are not...more

Conyers

Under Pressure: Key considerations and practical tips for BVI companies approaching insolvency

Conyers on

Inflationary pressures and increasing interest rates are expected to continue to have a negative impact on the global economy during 2023. In this article we consider restructuring options under BVI law available to companies...more

Skadden, Arps, Slate, Meagher & Flom LLP

How Directors Can Manage the UK Supreme Court’s ‘Balancing Exercise’ in Difficult Times

Economic downturns can put both companies and their boards to the test. An important judgment from the U.K. Supreme Court in October 2022, the Sequana case,1 clarifies the obligations of directors of a company facing the...more

Lowenstein Sandler LLP

When Chapter 11 Hits, D&O Claims Can Take the Unsecured Director Down

Lowenstein Sandler LLP on

Actions Against Directors, Officers Common After Chapter 11 Bulk-Asset Sales Leave Nothing to Recover- In the event of Chapter 11 Bankruptcy, creditors often look to recover funds by individually targeting directors or...more

K&L Gates LLP

Health Care Triage: Key Considerations for Officers and Directors of Distressed Companies

K&L Gates LLP on

In this week’s episode, Andrea Cunha outlines some of the key considerations directors and officers should assess when their company is approaching insolvency, including how to evaluate financial distress of the company, the...more

Sheppard Mullin Richter & Hampton LLP

Nota Bene Episode 94: Mapping COVID-19’s Impact on American Bankruptcy and Restructuring with Edward Tillinghast

Multinational boards are facing a major dilemma in response to COVID and its impact on their business forecasting. Many companies are facing insolvency and are left to decide how to approach bankruptcy proceedings. We’re...more

Jones Day

Directors' Duties—An Italian Overview: Tough Decisions Amid COVID-19 Emergency Legislation

Jones Day on

Italian COVID-19 legislation, with the aim of keeping companies alive by providing them with a short-term alternative to dissolution, provides for the suspension of (i) certain directors' obligations triggered by substantial...more

Pullman & Comley, LLC

Broker Beware: As Volatile Market Customer Arbitrations Spike, Who is Looking Out for Your BrokerCheck® Reporting Record?

Pullman & Comley, LLC on

As investors start to receive - and dare to open – recent account statements, the reality of the COVID-19 driven spring market volatility will come into focus.  Significant portfolio declines coupled with the financial stress...more

Robinson & Cole LLP

Financially Distressed Businesses: Revisiting the Business Judgment Rule and the Entire Fairness Doctrine

Robinson & Cole LLP on

Overnight, seemingly-healthy companies have seen their business models collapse, revenues evaporate, cash reserves dwindle, and valuations impaired. Some corporate boards, which in recent memory have focused almost...more

Jones Day

Directors' Duties—A European Overview: Financial Distress and COVID-19

Jones Day on

A company or group's financial distress causes significant turmoil for its owners, directors, managers, employees and often its suppliers and other creditors. For directors in particular, there are significant...more

Orrick, Herrington & Sutcliffe LLP

Financing a Distressed Private Company – De-Risking Inside Rounds

During economic downturns, private technology companies often seek emergency funding from existing VC and growth equity investors. These financings, sometimes called “inside rounds,” create conflicts of interest for boards...more

Troutman Pepper Locke

COVID-19 and Director Liability: Discharging Fiduciary Duties While Navigating the Financial Distress and Business Uncertainty...

Troutman Pepper Locke on

The COVID-19 pandemic has caused unprecedented economic disruption at virtually every level of a business, from alarming declines in demand and revenue, operational and supply chain problems , employee issues, roadblocks to...more

White & Case LLP

Lessons from the trenches: Tips from a leasing company’s chapter 11

White & Case LLP on

Fixed-wing leasing companies should consider six tips for navigating a possible restructuring precipitated by the COVID-19 crisis. About a year ago, I completed the most exhausting marathon of my life serving as the chief...more

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