Board Member Representation
Pre-Restructuring (Debtor) – Board members quickly learn their fiduciary responsibilities rapidly change as a company enters into what is legally referred to as the ‘zone of insolvency’.
Understandably, these board members may not believe they have the skill sets or experience to properly fulfill/perform their now broaden board responsibilities.
Moreover, should the company enter bankruptcy, the role of the board changes significantly. Having a board member familiar with the bankruptcy process can help the board manage the professionals ensuring all constituents interests are heard while keeping costs to a minimum.
Interpeak Consulting is an independent consulting firm and is available for debtor board assignments.
Post – Restructuring (Creditor) – Impaired creditors may find themselves having an equity position in a reorganized business and in need of an independent board member to represent their interests.
Interpeak Consulting has led the creation of a number of reorganized company boards and understands the needs former creditors have in these situations.
Many shareholder rights and other corporate governance issues may be delegated to the new board to approve or adopt. Having a specialist well versed in:
- Minority Shareholder Rights
- Drag along rights
- Put rights.
- Rights of first refusal
- Corporate governance
is essential in achieving the recovery these special type of investors require.