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.