Corporate Financial Distress: Risks and Opportunities

With a recession looming and corporate defaults predicted to increase significantly next year, every lawyer – regardless of practice area -- will likely be involved with clients facing financial distress or bankruptcy (e.g., their own client or an entity with which their client does business).  In this course, we provide an overview of the options that a well-advised company, board of directors, lender, potential acquirer, contract counterparty, and litigant should consider when the subject company finds itself in financial distress or bankruptcy. No prior knowledge of bankruptcy law or finance is required.  We will start with a brief overview of (a)  how boards of directors should analyze their fiduciary duties during times of financial distress, (b) the Bankruptcy Code, which provides a baseline against which out of court restructurings should be measured and (c) some of the primary tools that lawyers use in the restructuring  process to lay a foundation for the course’s focus on in court and out of court restructurings.In addition to learning about the law, students enrolled in this class will learn about finance and financial risk, advocacy, negotiation, and the art of representing a client or client group.