Rachel Jaffe Mauceri and James O. Moore co-authored this piece for Chapter 11 Bankruptcy and Restructuring Strategies, 2015 ed.: Leading Lawyers on Navigating Recent Trends, Cases, and Strategies Affecting Chapter 11 Clients (Inside the Minds).
The role of distressed investors in bankruptcy proceedings shows no signs of slowing. Distressed investors, whether holding debt, equity, or both, are prominent players in Chapter 11 negotiations and related litigation. Several significant decisions rendered in 2014 serve as strong reminders for financial parties to be diligent and to appreciate risk, in both investment and strategic decision making. This chapter highlights three sets of decisions that made headlines in 2014 for the distressed investment community.