A resource intensive-guide through the intricacies of the bankruptcy process, including a detailed examination of the terminology used in the bankruptcy world as well as a sample of documents encountered along the way.

Publisher Comments

Categories: Banking & Finance | Bankruptcy & Insolvency This title is part of the Bankruptcy Primer  and Smart Management lists. Of Interest: Bankruptcy & Distressed Restructurings: Analytical Issues and Investment Opportunities Bankruptcy Investing: How to Profit from Distressed Companies Corporate Recovery: Managing Companies in Distress Corporate Turnaround: How Managers Turn Losers Into Winners! Distressed Securities: Analyzing and Evaluating Market Potential and Investment Risk Logic and Limits of Bankruptcy Law Taking Charge: Management Guide to Troubled Companies and Turnarounds The Turnaround Manager's Handbook Why Companies Fail: Strategies for Detecting, Avoiding, and Profiting from Bankruptcy

This resource-intensive guide provides the business professional, including the troubled company executive, credit manager, workout professional and investor in distressed debt or equity, with a guided tour through the intricacies of the bankruptcy process in a concise and readily understood manner. The authors, all seasoned professionals, walk the reader through the stages of a Chapter 11 proceeding while addressing the business realities and dynamics affecting the diverse and often competing constituents involved in the restructuring process. 

To assist the reader, there is an extensive and detailed examination of the terminology used in the bankruptcy world to enable those going through the process to better understand the language and rules of this unique process. Also included are sample documents drawn from actual cases that are commonly encountered in Chapter 11 proceedings. 

This book will be of interest to corporate executives, boards of directors, investors, creditors, bankruptcy professionals, and anyone contemplating entry into the business arena.

Review by Gail Owens Hoelscher
From Turnarounds and Workouts, November 15, 2001

Don't be alarmed by the length of this book!  It consists of 170 pages of concise, readily understood, and well-organized text, accompanied by 552 pages of exceedingly useful sample documents commonly encountered in Chapter 11 proceedings.

The Executive Guide to Corporate Bankruptcy does not claim to be an exhaustive analysis of the current state of the law.  Rather, it explains, from a businessperson's perspective, the reorganization process from start to finish.  It details the roles of all players and discusses business operations within the context of a bankruptcy proceeding before approval of a plan of reorganization.  It specifies what is possible and not possible about a plan of reorganization.  

The Executive Guide is eminently readable.  The chapters are subdivided and bulleted into short sections for easy reference.  The authors never patronize the reader, but rather set forth complex material in simple declarative sentences, all the while interspersing the text with relevant and attention-grabbing references, such as dialogue from the 1963 movie It's A Mad, Mad, Mad, Mad World and a "used-car theory of corporate reorganization negotiation."

The first chapter provides a brief primer on bankruptcy and a history of IUS bankruptcy law.  Chapter Two covers the reorganization process itself, beginning with a thorough explanation of Chapter 11 and Chapter 7 bankruptcies.  Chapter Three provides insights into "the new realities of the restructuring process and dynamics."  Chapter Four is entitled, "Surviving the Plan Confirmation," and Chapter Five covers, "The Plan of Reorganization."  The last chapter discusses the ten myths of bankruptcy and debunks them one by one.  Among them, "Customers Will Never Deal With a Company in Bankruptcy!" and "You'll Never Borrow in This Town Again!"

To assist the reader, the authors include as the first appendix an extensive and detailed examination of the terminology used in the bankruptcy world to enable those going through the process to better understand the language and rules of this unique process.  The glossary includes terms from "tag-along rights" to "cramdown" and "Chapter 22."  The remaining 17 appendices include a hypothetical reorganization timeline, a sample bar date order, a sample plan for liquidation, a sample plan for sale to a third party, and a sample cash collateral agreement among others.  The samples were selected from such diverse cases as Megafoods Stores, Inc., Unison HealthCare Corp., and Baptist Foundation of Arizona, Inc.  Also included are a DIP facility pricing study and a summary of employee incentive plans, both prepared by the investment banking and financial advisory firm of Houlihan, Lokey, Howard and Zukin.

The Executive Guide to Corporate Bankruptcy is a guided tour through the intricacies of the bankruptcy process.  Troubled company executives, credit managers, workout professionals, and investors in distressed debt or equity alike can take this tour and dramatically increase their understanding of the stages of a Chapter 11 proceeding as well as the business realities and dynamics affecting the diverse and often competing constituents involved in the restructuring process.

From Booknews: 

The authors of this text are specialists in the area of reorganization and restructuring for the international law firm of Squire, Sanders & Dempsey, L.L.P., and have represented clients in the U.S. and abroad. Their guide explains the basics of the reorganization process from a business person's perspective, including what the Bankruptcy Code is all about, the new players in restructuring and their roles, the new realities for the troubled business entity, business operations within the context of a bankruptcy proceeding prior to approval of a plan for reorganization, what is and is not possible in a reorganization plan, and ten myths about bankruptcy. Intended for corporate executives, boards of directors, investors, creditors, bankruptcy professionals, and anyone considering business restructuring. Annotation c. Book News, Inc., Portland, OR (booknews.com) 

Thomas J. Salerno is co-chair of Squire, Sanders and Dempsey's reorganization and restructuring practice and chair of the firm’s international insolvency practice. He has been involved in restructurings in the UK, Germany, France, Switzerland and the Czech and Slovak Republics. In addition, he has lectured and assisted in revamping the insolvency laws of the Dominican Republic and Costa Rica, and he teaches comparative international insolvency at the University of Salzburg.  Mr. Salerno was named as one of twelve Outstanding Bankruptcy Attorneys in 1998 and 2000 by Turnarounds & Workouts, a newsletter published by Beard Group, Inc. in Washington DC.

Mr. Salerno has extensive experience representing both creditors and debtors in complex litigation and bankruptcy proceedings, pre- and post-bankruptcy workouts and financial restructurings. He has represented clients in diverse industries such as casinos, resort hotels, real estate, high tech manufacturing, electricity generation, agribusiness, construction, health care, airlines and franchised fast-food operations.

Mr. Salerno is a director of both the American Bankruptcy Institute, where he also serves on the executive committee, and the American Bankruptcy Board of Certification, Inc. He is a past chair of the Bankruptcy Section of the State Bar of Arizona and a fellow of the American College of Bankruptcy.

Jordan A. Kroop’s practice emphasizes bankruptcy and corporate restructuring matters. He represents both corporate debtors and significant creditors, including secured lenders, official creditor committees, commercial lessors and financial institutions, in some of the largest Chapter 11 cases in the nation. He has also handled disputes concerning corporate and real property taxation, asset-based financing, consumer protection laws and partnership liability.

Mr. Kroop has appeared before many federal and state courts and has accumulated substantial courtroom experience in motion practice, evidentiary hearings and appellate proceedings. He has also represented client interests in arbitration and mediation proceedings, receiverships and foreclosures.

Mr. Kroop is the co-author of a few books and many articles published in national bankruptcy-related periodicals and has prepared materials for, and spoken on panels at, many national and regional seminars and symposia. The national publication Turnarounds & Workouts named Mr. Kroop as one of the nation’s 12 Outstanding Young Bankruptcy Lawyers for 2000.

Mr. Kroop is a member of the American Bankruptcy Institute and the Bankruptcy Section of the State Bar of Arizona.

Craig D. Hansen is co-chair of Squire, Sanders and Dempsey's corporate restructuring group. He has represented both publicly and privately held companies, acquirors and noteholder committees in some of the largest and most sophisticated restructurings in the United States. Mr. Hansen has represented clients in restructurings in such diverse industry segments as manufacturing, technology, financial services, real estate, health care and casinos. He frequently appears in courts throughout the United States.

Mr. Hansen is a nationally recognized author and speaker on restructuring topics. 

Mr. Hansen is a member of the American Bankruptcy Institute, the Commercial Law League of America and the Bankruptcy Section of the State Bar of Arizona.

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