Mar 22, 2022
The appointment of an independent director to the board of a distressed company has become a common strategy in the chapter 11 playbook. What is the role—and value—of an independent director in an in-court restructuring? Oftentimes appointed by parties in interest, are they in fact independent? Today we discuss this topic and related issues with the CEO of a restructuring service provider company, who has served as an independent director for numerous large scale companies in financial distress.
What We Discussed in This Episode:
- The decisions that chief restructuring officers and independent directors typically make when appointed to financially struggling companies
- The driver for the need of independent directors in modern restructurings
- Whether the recent criticisms of independent directors in chapter 11s is warranted
- Whether the filing of retention applications for the independent director or soliciting creditors’ input on who is appointed would address concerns re the independent director model in complex chapter 11 cases
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This podcast is for informational and educational purposes only. It is not to be construed as legal advice specific to your circumstances. If you need help with any legal matter, be sure to consult with an attorney regarding your specific needs.