2024

With the increasing role of private capital (debt and/or equity) in health care businesses, from hospitals to specialty practices, the financial pressures, challenging payor reimbursement rates and regulatory environment have led to a growing number of restructurings and bankruptcies in this sector. This highly experienced panel of bankruptcy attorneys and financial advisors will discuss the critical issues involved in health care insolvency proceedings, including private-equity ownership and use of private capital on restructuring strategies, regulatory and compliance challenges, patient care considerations, and the role of the courts in balancing financial recovery with public health concerns. The discussion also will cover recent case studies, highlighting the lessons learned and best practices for managing these complex cases.

Hosted by Legislation & Mediation Committees Using the current proposed amendments to Bankruptcy Rule 9031 as an example, this panel will provide an overview on how to add, delete or revise the Bankruptcy Rules from concept to a successful enacted rule change.

This panel will explore the critical issues surrounding plan confirmation under subchapter V. Topics will include the interpretation of “fair and equitable” standards, the role of the subchapter V trustee, the debtor’s obligation to pay disposable income, and the potential for disputes over feasibility and good faith. The discussion also will address recent case law, practical tips for navigating confirmation challenges, and strategies for resolving disputes to achieve a successful plan confirmation. Attendees will gain valuable insights into how to approach confirmation in subchapter V cases, with a focus on practical solutions to common problems and the latest developments in the field. This session is essential for attorneys, trustees and other professionals involved in small business bankruptcies who are looking to deepen their understanding of subchapter V and improve their practice in this evolving area.

Hosted by Diversity, Equity and Inclusion & Young and New Members Committees Mentorship plays a pivotal role in fostering professional growth, nurturing talent and driving organizational success. From establishing meaningful mentor/mentee relationships to fostering a culture of continuous learning, this panel will explore practical approaches and best practices for harnessing the power of mentorship in the workplace.

Is the debtor always right? The Bankruptcy Code and its underlying policies are designed to give the debtor a fresh start and foster reorganization. However, committees and individual creditors are not always on board with a debtor’s restructuring efforts and at times prefer payment over compromise or even a going-forward business partner. This panel will cover the tools and strategies committees and individual creditors use to slow down a debtor’s restructuring efforts to address the collective demands of committees or the individual needs of creditors both big and small.

Hosted by Health Care & Emerging Industries and Technology Committees Get ready to dive into the future of health care as we uncover the revolutionary impact of AI! Following a dynamic overview of the current AI landscape and its rapid advancements, this panel will discuss groundbreaking AI applications and the subsectors and players set to thrive — or falter — as AI reshapes the health care landscape. The panelists will share investment trends and speak to the enthusiasm of private equity and lenders for AI innovations. Risks will be considered, including the workforce impacts, cost, regulations and potential hurdles that come with AI. They will cover critical legal issues, including intellectual property and data privacy in the bankruptcy context. Looking ahead, the panelists will offer their predictions for the next three to five years, outlining how AI will impact restructuring professionals and what clients may expect of restructuring professionals. Join this session to be part of the conversation shaping the future of health care!

Avoidance actions are necessary not only for crossovers, but also for stakeholders with some frequency or practice in non-mega venues. This panel will dive into avoidance actions and their role in restructuring.

Hosted by Business Reorganization & Consumer Bankruptcy Committees This panel will discuss the impact on consumers, and consumer bankruptcy cases, when a consumer lender or loan-servicer files for chapter 11.

Hosted by Commercial and Regulatory Law & Secured Credit Committees This panel will discuss various issues arising from the development of a new class of collateral: that which is remotely controllable. The concept of a secured creditor controlling its collateral is of course not a new or novel concept. However, the ability of secured creditors to control their collateral remotely is growing rapidly as new technology and new types of assets are developed. Robots, vehicles and even farm equipment can be directed and controlled remotely to do any number of different tasks, including simply leaving the custody of the borrower and traveling to the custody of a secured creditor. Beyond well-established technology, with the onset of AI and machine learning, collateral (software, vehicles, satellites, etc.) could be programmed to automatically shut down — or phone home — upon the occurrence of particular conditions. This brave new world of valuable assets, which can serve as meaningful collateral for debt, raises new, challenging issues about how these assets are used, regulated and pledged. The panelists will address an array of topics and unanswered questions about how the law is (or is not) suited to addresses the new issues, the risks for creditor and borrower, and the role of the government in finding efficient solutions to potentially unforeseen issues.

It is expected that a significant amount of activity in the next 18 months will consist of out-of-court restructurings, with a smaller proportion being chapter 11 bankruptcies.  Experts in restructuring estimate that out-of-court restructurings will comprise between 70% and 75% of the workout “transactions” made over the next year and a half. This panel will delve into what we can expect to see in the near future.