TABLE OF CONTENTS

• Jurisdiction: United States

INTRODUCTION.............................................................................................1

CHAPTER 1: The Retention of a CRO.........................................................3

A. Scope of Authority.............................................................................4

B. Chapter 11 Retention Application Issues ............................................ 8

C. The Zone of Insolvency....................................................................15

D. Compensation Structure...................................................................18

E. Reporting Relationship.....................................................................20

F. Financial and Turnaround Plans.......................................................24

G. Unusual Circumstances....................................................................25

CHAPTER 2: When Is Bankruptcy the Best Option?..............................29

A. Brief Overview of Out-of-Court Restructuring Alternatives.............30

B. Chapter 7 Liquidation......................................................................33

C. Chapter 11 Business Reorganization................................................34

D. Chapter 11 Liquidation.....................................................................38

E. Pre-Packaged/Pre-Negotiated Chapter 11.........................................40

F. Foreign Proceedings ........................................................................ 45

CHAPTER 3: Bankruptcy Planning...........................................................47

A. Implications of Bankruptcy on Business Operations.........................50

B. Vendors, Customers, Employees and Public Shareholder Relations ....................................................54

C. First-Day Pleadings.........................................................................60

D. Cash Collateral and Debtor-in-Possession Financing ........................ 64

E. Employee Issues ............................................................................. 72

F. Real Property Leases and Executory Contracts................................. 80

G. Retention and Payment of Professionals........................................... 86

CHAPTER 4: Bankruptcy Reporting Requirements...............................93

A. Monthly Operating Reports.............................................................. 94

B. Schedules & Statements ................................................................... 99

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