Bankruptcy and Fraud: The Ties That Bind?

In the current environment, factors such as a shortfall in assets, lack of debtor-in-possession financing and absence of potential buyers may make liquidation the only recourse in bankruptcy. With fewer dollars to satisfy claims, creditors may resort to litigation, alleging fraud as a means for obtaining recoveries. This could lead to additional exposures for directors and officers at companies facing bankruptcy.

18 minute read January 28, 2009 at 10:44 AM
By
Toby J.f. Bishop And Sheila Smith
Bankruptcy and Fraud: The Ties That Bind?

As economic turmoil continues, many companies face erosion of revenues, pressure for cost containment, and diminished liquidity. Filing for bankruptcy protection is sometimes part of the solution.

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