In the world of Chapter 11 negotiations, the creation of a litigation trust to pursue claims on behalf of unsecured creditors is a common strategy employed by official committees of unsecured creditors as a means to maximize creditor recoveries.
The Interminable 'Insured vs. Insured' Battle
<b><i>A New Obstacle to D&O Recoveries for Creditors</i></b><p>No matter how meritorious a claim may be, its ultimate value to creditors depends upon one thing — whether there is a viable source to satisfy any judgment obtained, since many D&Os do not have sufficient personal assets to satisfy any significant damages that may be awarded.
By
Norman N. Kinel and Elliot M. Smith
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