Davis Polk partner and Restructuring practice co-head Marshall Huebner, partner Adam Shpeen, counsel Stephen Piraino and associate Mariya Dekhtyar authored “Risks for Transactions and Directors in Financially Distressed Businesses (United States)” in Practical Law. In the article, the authors discuss the duties that directors owe to certain types of U.S. companies, whether or not insolvent; likely investigations by certain stakeholders of the pre-insolvency actions of directors; the potential for claims against directors and the protections available to them against these claims; and the powers of a court to unwind certain prepetition transactions to maximize recover for the company’s creditors.

Read the article

Reproduced from Thomson Reuters Practical Law with the permission of the publishers. For further information, visit us.practicallaw.com.