News Topic: The Financially Troubled Company
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Fiduciary Duties And Financial Distress In The Time Of COVID-19
The COVID-19 pandemic has caused unprecedented economic disruption, creating sudden financial distress across industries. Companies are now facing impacts ranging from a dramatic decline in revenue of uncertain duration, to potential setbacks to M&A ... Read full article
The Venture-Backed Company Running Out Of Cash: Fiduciary Duties And Wind Down Options
You Say You Want A Dissolution: An Overview Of The Formal Corporate Wind Down
A New Way Of Looking At Termination On Bankruptcy Contract Clauses
Image Courtesy of NobMouse ... Read full article
DIP Financing: How Chapter 11′s Bankruptcy Loan Rules Can Be Used To Help A Business Access Liquidity
Cash Is King . An army may march on its stomach, but for companies, it’s liquidity that keeps the business going. For many companies, typical sources of liquidity, beyond cash flow from sales or other revenue, are (1) financing from banks or other secured ... Read full article
The Privilege Is All Mine: What Happens To A Corporation’s Attorney-Client Privilege In Bankruptcy?
It’s well-established that a corporation has an attorney-client privilege and can assert it to keep communications between the corporation and its attorneys confidential. When a corporation is solvent, its officers and directors maintain the right to ... Read full article
The Privilege Is All Mine: What Happens To A Corporation’s Attorney-Client Privilege In Bankruptcy?
It’s well-established that a corporation has an attorney-client privilege and can assert it to keep communications between the corporation and its attorneys confidential. When a corporation is solvent, its officers and directors maintain the right to ... Read full article
DIP Financing: How Chapter 11's Bankruptcy Loan Rules Can Be Used To Help A Business Access Liquidity
Cash Is King . An army may march on its stomach, but for companies, it's liquidity that keeps the business going. For many companies, typical sources of liquidity, beyond cash flow from sales or other revenue, are (1) financing from banks or other ... Read full article
The Privilege Is All Mine: What Happens To A Corporation's Attorney-Client Privilege In Bankruptcy?
It's well-established that a corporation has an attorney-client privilege and can assert it to keep communications between the corporation and its attorneys confidential. When a corporation is solvent, its officers and directors maintain the right to ... Read full article
Using Chapter 11 Bankruptcy's Sale Process To Achieve An Exceptional Sale Price
A Difficult Problem . Imagine that your company is facing a government investigation, requiring you to spend hundreds of thousands of dollars in legal fees and costs, while being threatened with substantially more legal expense. That financial burden is ... Read full article
Summer 2012 Edition Of Bankruptcy Resource Now Available
The Summer 2012 edition of the Absolute Priority newsletter, published by the Bankruptcy & Restructuring group at Cooley LLP , of which I am a member, has now been released. The newsletter gives updates on current developments and trends in the ... Read full article
Forced Into Bankruptcy: The Involuntary Bankruptcy Process
When a company is facing financial distress, the question often comes up whether creditors can "force" the company into bankruptcy. Although the answer is more complicated than it may seem, this post aims to sort out what being "forced into ... Read full article
California Court of Appeal Provides Guidance For Directors Of Financially Distressed California Corporations
As I have reported over the past several years, Delaware courts, including the Delaware Supreme Court, have addressed the nature of a director's fiduciary duties when a Delaware corporation is insolvent or in the "zone of insolvency," most ... Read full article
Delaware Supreme Court Affirms Ruling Protecting Managers Of Insolvent LLCs
Creditor Derivative Claims Against Fiduciaries Of Insolvent Corporate Entities. In a 2007 decision in North American Catholic Educational Programming, Inc. v. Gheewalla, et al., 930 A.2d 92 (Del. ... Read full article
Spring 2011 Edition Of Bankruptcy Resource Now Available
The Spring 2011 edition of the Absolute Priority newsletter, published by the Cooley LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter gives updates on current developments and trends in the ... Read full article
New Ruling Finds Important Protection For Managers Of Insolvent Delaware LLCs
Derivative Claims Against Directors Of An Insolvent Delaware Corporation . With its 2007 decision in North American Catholic Educational Programming, Inc. v. Gheewalla, et al., 930 A.2d 92 (Del. 2007), the Delaware Supreme Court held that directors of an ... Read full article
Delaware Supreme Court Affirms Ruling Protecting Managers Of Insolvent LLCs
Creditor Derivative Claims Against Fiduciaries Of Insolvent Corporate Entities. In a 2007 decision in North American Catholic Educational Programming, Inc. v. Gheewalla, et al., 930 A.2d 92 (Del. ... Read full article
Spring 2011 Edition Of Bankruptcy Resource Now Available
The Spring 2011 edition of the Absolute Priority newsletter, published by the Cooley LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter gives updates on current developments and trends in the ... Read full article
California Court of Appeal Provides Guidance For Directors Of Financially Distressed California Corporations
As I have reported over the past several years, Delaware courts, including the Delaware Supreme Court, have addressed the nature of a director's fiduciary duties when a Delaware corporation is insolvent or in the "zone of insolvency," most ... Read full article