While bankruptcy will result in a period of change, it doesn’t have to be feared. Instead, bankruptcy often may be more appropriately seen as a strategy to obtain a fresh start. This article identifies four strategic options for distressed or insolvent companies.
Covid-19: A Bankruptcy Pandemic
The country is about to witness an unprecedented number of corporate bankruptcy filings. Companies that were otherwise healthy 90 days ago or at least had a fighting chance of avoiding a trip through the bowels of bankruptcy are now faced with the grim reality of a Chapter 11 filing. Gary Kennedy, who guided American Airlines through one of the most successful corporate bankruptcies in history, provides guidance for companies facing restructuring.
‘There is a Tsunami Coming’
More Texas businesses are filing for bankruptcy this year than during the Great Recession or anytime in the past two decades, and legal experts say the wave of insolvencies and restructurings is still far from breaking or hitting their peak. Houston has emerged as the preferred venue for large, complex restructurings for companies such as J.C. Penney and Neiman Marcus, though Dallas has a new bankruptcy judge on deck. The Texas Lawbook examines the trends and provides analysis from the top bankruptcy experts.
DBJ: J.C. Penney Plans to Create a REIT as Part of Bankruptcy
The stores in the real estate investment trust would be leased to a new operating company called “New JCP”, according to court documents.
GC Brandy Treadway Leads J.C. Penney into Chapter 11
On Page 15 of J.C. Penney Company’s bankruptcy filing Friday late afternoon, there is the signature of the corporation’s general counsel and corporate secretary, Brandy Treadway. “Attached hereto is a true, complete, and correct copy of the resolutions of the Board of Directors of the Company.” Here is a profile of J.C. Penney’s GC, who will play a critical role in the retailer’s restructuring.