In this Article, we use hand-collected data to shed light on a troubling innovation in bankruptcy practice. We show that distressed companies, especially those controlled by private-equity sponsors, often now prepare for a Chapter 11 filing by appointing bankruptcy experts to their boards of directors and giving them the board’s power to make key bankruptcy...
So-called independent directors with strong ties to distressed debtors and private equity sponsors are being appointed with increasing frequency in large chapter 11 cases. In those cases, unsecured creditors on average are worse off, according to a study published this week....
Purdue Pharma, the bankruptcy drug manufacturer at the center of the opioid crisis, entered into a controversial settlement of its civil and criminal liability for opioid harms with the Department of Justice....
