Worldwide: Financial Restructuring

Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern District of New York issued a decision earlier this year that had the effect of recognizing under Chapter 15 of the U.S. Bankruptcy Code...

Directors and officers of companies in financial distress face complex responsibilities and challenges. Indeed, managing a company on the brink of insolvency is often uncharted territory for its leadership. When confronted with such challenges, adherence to fiduciary duties is crucial to ensure responsible governance and minimize the risk of litigation or personal liability.

The Supreme Court ruled in Harrington v. Purdue Pharma L.P. that the U.S. Bankruptcy Code does not permit a Chapter 11 plan to grant a release that discharges creditors' claims against third parties without the consent of affected claimants, that is, a nonconsensual third-party release.