Rethinking Bankruptcy: The Importance of Focusing on Technology – Insolvency/Bankruptcy

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Bankruptcy is a formal process to preserve stakeholder value. Often the procedures include negotiations between stakeholders which are arduous, time consuming and costly. As such, the primary focus during bankruptcy tends to be to complete the process, rather than position the business for healthy, sustainable growth after emergence.

This limited focus is certainly understandable, given all the pressures and strains that come with bankruptcy. And it’s amplified by the rise of pre-packaged and pre-arranged bankruptcies, which focus primarily on addressing capital structure issues (with minimal attention to business operational changes). However, some of the constraints businesses face during bankruptcy may be self-imposed or driven by conflicting priorities that restrict management’s options and limit the ability to grow and prosper post-bankruptcy.

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The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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What we read this week [August 30, 2022]

Mayer Brown

Judge David Jones of the Southern District of New York denied a request for a formal shareholders’ committee in Revlon’s Chapter 11 proceedings, as reported by Reuters.

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