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Emerging Professionals Panel: Show Me the Money — Understanding, Structuring and Getting Approval for Debtor-in- Possession Financing
This panel explores DIP issues in a chapter 11 case and is intended to provide both fundamental information and an overview of emerging issues, including: What is the primary analysis that needs to be undertaken? How do you assess a 13-week cash flow? Who are your potential lenders, and what are the potential terms? What are the pitfalls and areas of concern for other parties in interest, the U.S. Trustee and the court?
Small Commercial Chapter 11 Panel: A Decent Burial — Winding Up the Small Business Debtor
In the Massachusetts economy of the 21st century, insolvency professionals are increasingly called upon after it is too late to save a small business. Thus, our practice is increasingly liquidation-focused, requiring the professional to seek to engage in a process that both tightly controls cost and maximizes value. This panel will explore some of the challenges faced in this area, and will focus on such topics as developments in out-of court liquidations (ABCs, self-managed liquidations and other possible structures), setting up a sale process and the prospects for a viable auction, disposition of intellectual property (particularly where the IP portfolio is of limited value) and other unique assets such as liquor licenses, the liquidation of nonprofit debtors, and the possible use of chapter 7 as an effective disposition tool.
Financial Advisory Panel: Curing the Cause and Not Just Treating the Symptoms — How to Fix the Business Issues and Not Just Adjust the Balance Sheet
The Bankruptcy Code offers a variety of means for addressing balance-sheet issues. Its provisions for dealing with the operational issues that caused those balance-sheet problems are more limited, however. This session will discuss the diagnostic tools available to identify operational problems, with a particular focus on the primary methodology generally used by financial professionals: the “operational review.” Rather than just addressing the symptoms, an operational review primarily focuses on the root causes of a distressed/insolvent company, and provides an outline for action plans that management and the turnaround team can execute in the recovery process. The session will also address the legal and financial issues that should be considered and resolved in dealing with some of the most often-seen problems, which frequently include stale management, poor strategy, a lack of productivity focus, and deficient information infrastructure. The panel will discuss such implementation-process issues as severance and other employment issues presented in offloading stale management, as well as board fiduciary duty issues arising from receiving the results of the operational review and addressing, or not addressing, the issues identified. The panel seeks to discuss the best ways to effectively restore companies and enhance cash flow beyond the traditional and common expense-cutting methods.
“Sub Rosa Plans”: Their Impact in, and Provision of a Potential Alternate Exit Strategy from, Chapter 11
This program will explore the boundaries of the sub rosa plan doctrine in a variety of contexts potentially arising in chapter 11 cases. The focus will be on efforts to resolve the relationship of the debtor to all or many of its creditor constituencies and equity-holders that arguably deviate from the priority and procedural schemes of the Bankruptcy Code. Included among the areas examined will be (1) secured creditor/acquirer carve-out and/or gifting agreements, (2) structured dismissals following § 363 sales, (3) settlements of significant or global controversies, (4) lock-up and plan-support agreements, and (5) significant distribution or settlement arrangements made in the context of DIP financing or asset sales made jointly with nondebtor parties.
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