Having managed executive compensation for creditors in dozens of restructurings over twenty years, I have developed approaches to avoid landmines, lessen friction, and enhance chances for a successful outcome. The following example highlights the challenges often faced by creditors.

Case Study: Risks of Creditor Misalignment on Pay

NEW YORK--(BUSINESS WIRE) - DebtorCo today announced that it has commenced a comprehensive reorganization to strengthen its capital structure and financial performance and best position the Company for future success. Upon restructuring, DebtorCo will reduce its debt by half and have access to new capital to better serve customers. According the DebtorCo’s CEO, “the transaction greatly enhances our company’s financial position so we can continue to invest and pursue meaningful growth opportunities. We look forward to beginning this new chapter for DebtorCo. Our lenders will become our new owners and strategic partners and are aligned with our long-term strategy.”