Chapter 11 and Independent Directors: Maximizing Recovery; Challenging Conflicts; Defending Director Integrity

A live 90-minute CLE video webinar with interactive Q&A

Wednesday, January 26, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, January 7, 2022

or call 1-800-926-7926

This CLE course will explore the use and effect on creditor options and payouts of companies' bringing on new "bankruptcy directors" as they hurdle toward Chapter 11, the impact of bankruptcy or "independent" directors on the integrity of the bankruptcy system, and what creditors and creditors' committees can do if they claim directors are hijacking the process for the benefit of equity holders. Independent directors will need to best position themselves to refute such accusations and efforts.


A significant source of assets to pay unsecured creditors in Chapter 11 could be the recovery from shareholders or other insiders for alleged self-dealing or violation of fiduciary duties. Creditors, shareholders and secured lenders may disagree over the value and merits of this litigation, which frequently alleges insider self-dealing that contributed to the bankruptcy filing.

According to unsecured creditor constituencies, to thwart recovery efforts and suppress creditor voices, shareholders have begun adding independent bankruptcy directors before or shortly after filing Chapter 11 and then ceding to their control actions against shareholders. Proponents argue independent directors bring the efficiency and speed necessary to save the business.

Creditors need to know what tools are available to them to resist actions of bankruptcy directors to protect those that violate duties to the debtor. Independent directors need to know how to properly position themselves to defend against such accusations.

Listen as this panel of experienced bankruptcy counsel discusses the phenomenon of bankruptcy directors and what strategies are available to creditors to increase their recovery.



  1. The emergence of "independent" directors
    1. Before filing
    2. After filing
  2. Arguments in favor of independent directors
  3. Conflicts of interest
  4. Creditor and committee responses
  5. Recent cases


The panel will review these and other critical issues:

  • What makes a director truly "independent"?
  • What showing should bankruptcy courts require before deferring to the debtor board's decisions on investigations and avoidance actions?
  • How can creditors and committees enhance recovery for creditors?


Selbst, Stephen
Stephen B. Selbst

Herrick, Feinstein

Mr. Selbst has more than 30 years of experience representing debtors, creditors, official committees, distressed...  |  Read More

Smith, Steven
Steven B. Smith

Herrick, Feinstein

Mr. Smith focuses his practice on complex corporate restructuring and creditors' rights, including in court Chapter...  |  Read More

Steinberg, Arthur
Arthur J. Steinberg

King & Spalding

Mr. Steinberg is a senior financial restructuring partner with 36 years of practice representing examiners, trustees,...  |  Read More

Attend on January 26

Early Discount (through 01/07/22)

Cannot Attend January 26?

Early Discount (through 01/07/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video