Managing the Decline - The Role of the General Counsel in a Faltering Company
Mitch Baruchowitz, General Counsel, Abadi & Co. Group, USA
In the current complex business environment, the vast majority of companies who must sell themselves to preserve some remaining value, or those who fail to sell and experience either a Chapter 11 or Chapter 7 bankruptcy, arrive there through a series of events rather than sudden business failure. Whether it is the failure of management to contain costs over a long term, or the loss of a critical client that causes a business to fail, the General Counsel’s role in a faltering company is essential to successfully preserving value and preparing the company for a bankruptcy that can return value to creditors and if truly successful, even deliver value to shareholders. This must all be done at a time when resources for outside professionals are limited and even retaining company employees could prove difficult. Quite simply, the GC many times becomes the center of activity during a turbulent time and forethought and preparation can be the difference between being the eye of a storm or merely part of the hurricane.
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