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What Every Board Member Should Know if Your Company is Facing Financial Distress

June 29, 2020 at 12:30pm1:45pm

The economic fallout of the COVID-19 pandemic has quickly repositioned many previously financially-strong companies to the verge of insolvency. How does a Board pivot in this environment?  What questions should the Board be asking the CEO that will uncover the realities being faced?

Managing through periods of financial distress are among the most difficult situations a Board and Leadership Team face.  If you’re unsure about where your company’s liquidity stands, or suspect your firm is closer to financial distress than desired, and you want to avoid reaching the “zone of insolvency,” then don’t miss this event.

Joe McHugh (PDA Boston Founding Member) will interview three nationally-recognized workout and restructuring experts: Stephen Gray (Gray & Company), Doug Rosner (Goulston & Storrs), and Adrienne Walker (Mintz), in a unique fireside chat where they will answer some of the most pressing questions asked by Board Members, C-Suite Leaders, and Business Owners of firms facing financial distress:

  • What early-warning indicators of financial distress should Management and the Board be receiving on an expedited basis?
  • How can the Board work proactively with Management to avoid, or work through, a period of severe illiquidity?
  • What are the Board’s enhanced responsibilities, and the Board’s increased legal liabilities (and workarounds), in guiding Management on how to survive a liquidity crisis, or when a company is insolvent?
  • What are common mistakes that Boards and Management make during a liquidity crisis?
  • When is the right time to engage with a restructuring advisor and attorney? How does a firm select the right workout service providers to manage a liquidity crisis?
  • What is the restructuring roadmap for out-of-court engagements, and for Chapter 11 reorganizations? What are the advantages and disadvantages of each?

The audience for this program:

  • All Private Company Board Members, CEOs, CFOs, and other C-Suite executives.
  • Financial Service Providers and Lenders.
  • Board and C-Suite Executives who have had recent downgrading of their credit rating, debt covenant defaults, reductions in credit availability, etc.

Value to participants:

  • Learning from other companies’ experiences, mistakes, success stories, and best practices of Boards, Operating Teams, and Owners in identifying where they stand, and managing through and around severe liquidity challenges.
  • Hear some important questions to ask your CEO to ensure that the Board’s current understanding of your firm’s liquidity position is accurate and the liquidity forecast is pressure-tested.
  • Hear about techniques that could potentially help your firm avoid insolvency.
  • Learn by example, how other companies have taken steps to avoid workouts.
  • Understand options and experiential learnings that can reduce operating risks.
  • Learn how to step up to implement actionable strategies to assist Management in managing through a liquidity crisis.