Here's What Worries In-House Leaders the Most About Financial Restructuring
A new survey of nearly 400 in-house counsel from a broad range of companies found that legal department leaders consider poor strategizing and sloppy record-keeping to be the top two risks that could wreck a financial restructuring effort.
November 01, 2019 at 01:57 PM
3 minute read
The original version of this story was published on Corporate Counsel
Smart in-house leaders are preparing for the next economic downturn. And a big part of that prep work should include maintaining corporate financial records and putting together a solid strategy for financial restructuring.
A new survey of nearly 400 in-house counsel from a broad range of companies found that legal department leaders consider poor strategizing and sloppy record-keeping to be the top two risks that could wreck a financial restructuring effort.
Other concerns include: poor communication from management, lack of transparency, disillusioned creditors, ambiguous contracts, negative media attention and cross-border restructuring, according to the latest "General Counsel Up at Night" report from ALM Intelligence and Stroock & Stroock & Lavan.
While most respondents felt that business was good and restructuring wasn't foremost on their minds, in-house lawyers in the retail industry are facing a different reality and are bracing for financial distress. Nearly half of the respondents in the retail sector predicted an increase in insolvencies.
"As such, it can be expected that insolvencies will increase in adjacent industries," the report states. "Given the level to which consumer products and food and beverages are intertwined with the retail industry, the inclusion of each industry as a possible 'at risk' companion is not unexpected."
Looking at regulation and legislation, 46% of respondents agreed that the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 introduced needed reforms to the regulatory framework governing financial restructuring, while 18% disagreed.
On the Tax Cuts and Jobs Act of 2017, 29% believed that it would have a negative impact on companies undergoing restructuring, while 27% thought the legislation has or will have a positive impact.
Finally, 23% of respondents believed that the International Swaps and Derivatives Association's rules on credit events should be updated to avoid manufactured defaults, while just 5% didn't think the rules needed an update.
Read More:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Stock Trading App Robinhood Hit With Privacy Class Action 1 Month After Alleged Data Breach
Congress and Courts Are Considering Litigation Financing: Is Disclosure Imminent?
8 minute read
Auditor Finds 'Significant Deficiency' in FTC Accounting to Tune of $7M
4 minute read
'A World of Credit': Ex-FTX Executive Gary Wang Sentenced to Time Served Following Cooperation
Trending Stories
- 1Friday Newspaper
- 2Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 3Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 4NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 5A Meta DIG and Its Nvidia Implications
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
