When a distressed business is in “free fall,” the most consequential decisions often occur before a petition is ever filed. This panel examines the high-stakes strategic choices lenders, debtors and fiduciaries face in the critical pre-petition window and how those decisions can shape, or derail, the outcome of a restructuring. The panelists explore such questions as whether a secured lender should sweep operating accounts holding cash collateral, when a debtor should pursue chapter 7, chapter 11 or an assignment for the benefit of creditors, and whether consenting to a receivership may offer a better path. The panelists also address insider claim resolution, preferential or critical vendor payments, employee compensation issues, and the litigation risks that follow pre-filing conduct.
Learning Objectives:
- Attendees will identify critical pre-petition decisions that can significantly affect the outcome of a distressed business restructuring.
- Attendees will analyze strategic alternatives, including chapter 7, chapter 11, receiverships and assignments for the benefit of creditors.
- Attendees will evaluate litigation risks and stakeholder consequences arising from pre-filing conduct, cash management decisions and insider transactions.