Having the best-available directors is the goal of every company, but it becomes critical when a business faces financial distress.
Delaware Trust Company has been a leading national provider of director services for more than 20 years. Nothing maximizes value and insulates a company from litigation more than having knowledgeable, experienced bankruptcy directors to deal with a distress situation.
Why are qualified directors so important when a company is in financial distress?
Many directors are uncomfortable serving in the bankruptcy context because of liability concerns and uncertainty with respect to the scope of their duties. As a result, often they resign just when the business needs them most.
This creates a special problem for the business because directors are generally required to authorize a bankruptcy filing and to make critical decisions regarding the management of the troubled company, including the disposition of the business’s assets, whether by sale, merger, reorganization, or liquidation.
Without knowledgeable bankruptcy directors, a company’s ability to meet its obligations to creditors and equity holders is severely impaired. Unless directors are in place to authorize a bankruptcy filing, sale, or merger, the business may be prevented from doing so altogether, to the detriment of its creditors.
Also, independent directors can help insulate the board from potential liability and improve the overall confidence of creditors, equity holders, and bankruptcy courts.
Delaware Trust provides bankruptcy directors who are knowledgeable about the intricacies of distress situations and the fiduciary duties of directors of companies that are insolvent or are entering the zone of insolvency.
Turn to Delaware Trust for your director needs.
Delaware Trust is ready to assist you at your most critical moments. Our directors can quickly assume the helm when other directors resign in the face of insolvency. They have participated in numerous out-of-court restructurings and have guided companies through the bankruptcy process. Delaware Trust’s directors have done everything from authorizing a material event to hands-on, day-to-day management.
For more information on bankruptcy director services, please complete the form to the right.