815 Advising a Distressed Enterprise and Its Stakeholders

This course will provide students with a practical understanding of the role of outside counsel to a variety of key stakeholders in complex, high-stakes, and fast-paced business reorganizations – including distressed companies and their officers and directors, secured and unsecured creditors, distressed investors, and formal and informal committees.  Discussion topics include (i) advising the Board of Directors of a distressed company during periods of significant uncertainty and risk, including as to fiduciary responsibilities and liability concerns; (ii) out-of-court and in-court restructuring alternatives, techniques, and pitfalls; (iii) preparation, commencement, and administration of a case under chapter 11 of the Bankruptcy Code; (iv) key issues in chapter 11 proceedings, including the automatic stay, DIP financing, cash collateral, plan exclusivity, plan formulation, cramdown, 363 sales, examiners/trustees, third-party releases, and Bankruptcy Court jurisdiction and appeals; and (v) negotiation strategies and the increasing use of mediation in chapter 11.  Discussions will highlight recent chapter 11 case law, and also will touch briefly upon the role of counsel to a distressed municipality and its creditors, with a brief overview of Puerto Rico’s municipal debt crisis.

Course Type
Lecture
2018
Winter 2018
Course Number Course Credits Evaluation Method Instructor Meeting Day/Times Room

815.01 0.5 ThF 1:30-4:30 PM

This course will provide students with a practical understanding of the role of outside counsel to a variety of key stakeholders in complex, high-stakes, and fast-paced business reorganizations – including distressed companies and their officers and directors, secured and unsecured creditors, distressed investors, and formal and informal committees.  Discussion topics include (i) advising the Board of Directors of a distressed company during periods of significant uncertainty and risk, including as to fiduciary responsibilities and liability concerns; (ii) out-of-court and in-court restructuring alternatives, techniques, and pitfalls; (iii) preparation, commencement, and administration of a case under chapter 11 of the Bankruptcy Code; (iv) key issues in chapter 11 proceedings, including the automatic stay, DIP financing, cash collateral, plan exclusivity, plan formulation, cramdown, 363 sales, examiners/trustees, third-party releases, and Bankruptcy Court jurisdiction and appeals; and (v) negotiation strategies and the increasing use of mediation in chapter 11.  Discussions will highlight recent chapter 11 case law, and also will touch briefly upon the role of counsel to a distressed municipality and its creditors, with a brief overview of Puerto Rico’s municipal debt crisis.

Grading Basis: Credit/No Credit

Degree Requirements
Pre/Co-requisites
None
Enrollment Restrictions
None

*Please note that this information is for planning purposes only, and should not be relied upon for the schedule for a given semester. Faculty leaves and sabbaticals, as well as other curriculum considerations, will sometimes affect when a course may be offered.