Bankruptcy Process and Procedure

Co-Chairs Corner

The Commercial and Regulatory Committee produced a variety of programs, articles and materials throughout 2024. Set forth below is a short summary of highlights from the past year; full details of committee activity (including links to program materials and newsletter articles) are available on the committee’s website at www.abi.org/membership/committees/commercial-and-regulatory-law.

The Importance of Strategic Communications and Media Relations in High-Profile Restructurings

In high profile restructurings, managing public perception and crafting a go-forward narrative matters. This session explores how strategic communications play a critical role in mitigating reputational damage and preserving brand and estate value throughout the restructuring process, including positioning the company for success upon emergence.

We will explore the importance of:
- Developing a comprehensive communication strategy to address various stakeholders (employees, partners, media, etc.) and preserve enterprise value
- Being prepared to implement aspects of the strategy even before filing (given propensity for leaks) and during key moments of the process through emergence
- Communicating effectively to promote business objectives, shape public perception, support legal strategies, and stabilize key stakeholder relationships
- Proactively (and reactively) addressing misinformation, media inquiries and stakeholder concerns to protect the brand and franchise
- Learning from real-world examples of communication efforts in major bankruptcies
Participants will be able to understand:
- The role strategic communications play in preserving value of the brand and business, including keeping internal and external parties apprised and on side
- The importance of crafting clear, forthright, consistent and timely messaging
- The ways in which strategic communications can significantly influence the outcome of a restructuring process

Debtor Suggested Speakers Paul Caminiti paul.caminiti@reevemark.com Reevemark (Strategic Communications)

Unlocking Hidden Value: Leveraging Life Insurance as a Bankruptcy Asset

With over 18 million life insurance policies lapsed or surrendered in 2023, and hundreds of thousands potentially eligible to be treated as valuable assets, bankruptcy trustees have a significant opportunity to enhance outcomes for estates and creditors. This session explores the critical role of life insurance policies in bankruptcy cases, emphasizing the process of valuing and monetizing these assets. It also addresses the importance of maintaining anonymity and ensuring maximum value through competitive marketplaces and non-traditional valuation practices. Attendees will gain actionable insights into identifying, protecting, and leveraging life insurance policies as a pivotal asset in bankruptcy proceedings. 1) Identify Opportunities: Understand how to recognize life insurance policies as potential assets during the bankruptcy process, including the types of policies most suitable for valuation or sale.

2) Understand the Process: Gain knowledge of the step-by-step process to evaluate, protect, and monetize life insurance policies, from assessing the policy's value to executing a sale.

3) Prioritize Anonymity: Learn best practices for maintaining the anonymity of policyholders and insureds to safeguard personal information and ensure compliance with ethical and legal standards.

4) Maximize Value: Explore how competitive bidding platforms and life settlement marketplaces can yield the highest possible value for creditors while navigating potential challenges.

5) Promote Awareness: Discuss strategies for educating policyholders and stakeholders about life insurance as an asset class, preventing policies from being overlooked or prematurely lapsed. Business Suggested Speakers Stephen Jass stephen@LSHub.net Life Settlement Hub

Beware the Limits of Federal Rule of Evidence 408: “Confidential Settlement Communications” in One Matter May Not Be in Another

Lawyers often prominently designate a letter or e-mail communication as a “Rule 408 Protected Settlement Communication” that is “inadmissible” as evidence. That label will be in bold and italicized, maybe in all caps, for emphasis. Similarly, at the beginning of a telephone, virtual or in-person meeting, an announcement that it is a “Rule 408 Settlement Conference” may be uttered and met with general agreement.

Consent in a Post-Purdue World

In the wake of the U.S. Supreme Court’s Harrington v. Purdue Pharma L.P. [1] decision definitively doing away with nonconsensual third-party releases, courts and practitioners alike have been struggling with the meaning of “consensual” in the context of such releases. One such jurist is the Hon. Craig Goldblatt of the U.S. Bankruptcy Court for the District of Delaware, who tackled the issue in the recent In re Smallhold Inc. [2] decision.

Co-Chairs’ Corner

Winter Leadership Conference Panel

At the upcoming Winter Leadership Conference, taking place Dec. 12-14 in Scottsdale, Ariz., the Commercial and Regulatory Law and Secured Credit Committees are hosting a joint panel, “Remote Control: Not Just for Toys Anymore,” on Dec. 13 at 9:30 a.m. with the participation of the following speakers:

No Need for Chapter 11 Sub V Trustees

UST should provide data on the fees charged by sub V trustees and what they did for the case to justify their needless fee Business Shmuel Klein SHMUEL.KLEIN@VERIZON.NET law office of shmuel klein

Whole Leader Health

World-class leadership begins with the Whole Leader. Promoting wholeness requires addressing multiple dimensions of well-being. Considering system induced stress is a significant cost personally, professionally, and organizationally, bankruptcy leaders should consider a holistic approach to improving results. -Why wholeness is the new standard for individual, team, and organizational well-being.
-How to improve resilience to reduce the effects of system induced stress.
-How to lead a company culture with higher engagement, learning, and growth levels. Other Suggested Speakers Dr. David Nico events@davidnico.com DavidNico.com

The Shrinking Practice

The state of the bankruptcy bar and why it's shrinking. In the past 2 years, our 3-person panel has taken over 5 other law practices. Three practitioners retired. One died. One simply wanted to get out of the bankruptcy practice area. Many more exits are on the horizon.

It's important to understand how to take over another attorney's practice effectively, efficiently, and ethically. We are compelled to give clients options, but also have a duty to ensure they will continue to have cost-effective representation. It's also essential that those of us in the practice NOW are taking the appropriate steps in succession planning to make these transitions smooth.

We will discuss why we think people are getting out, why now, and what we can do to ensure we continue to have provide quality legal services in the practice of bankruptcy law. What steps must be taken under the guidance of the OCDC to efficiently and effectively take over a law practice. Consumer Suggested Speakers Betsy Lynch blynch@chinnery.com Chinnery Evans & Nail, PC

Is My Mediation Privileged and Confidential?

Between local rules establishing mediation confidentiality [1] and Federal Rules of Evidence (FRE) 408 and 501, most assume that mediation is privileged and confidential, but that might not always be the case.