Corporate Bankruptcy and Financial Distress,

and --

(1)   Executive Compensation

  • 2015.08.28  Advice for Directors & Officers of Distressed Corporations.  This Inside Counsel Article (by Poerio et al) focuses on executive compensation issues.
  • See BAPCA Section 503 re incentive, retention, and severance payment restrictions applicable to select executives. 
  • 2018.01.25  RSUs result in Equity Claims; subordinate to general creditor claims. That is the holding of the 2nd Cir. in Acerra v. Giddens dismissing bankruptcy claims by former Lehman executives.

​(2)  WARN Act

  • 2015.09.21  WARN Violations Could Result in Personal Liability for Directors & Officers.  In Stanziale v. MILK072011. Delaware's Bankruptcy Court denied a motion to dismiss claims that a bankrupt company's officers and directors should be held personally liable for a breach of fiduciary duties. See WARN ACT and Bankruptcy.

See also: Pension Liabilities because government-initiated litigation often arises due to company financial distress.