On April 25, 2012, Flaster/Greenberg bankruptcy attorneys Steven D. Usdin and Nella M. Bloom published an article in The Legal Intelligencer, entitled “Identifying Signs a Company Is in Financial Distress,” as part of the GC Mid-Atlantic line of articles. This article identifies signals that may exist for a company on the verge of financial distress, and what General Counsel should look for in identifying signs of distress.
Some signs are fairly straightforward, such as the company not timely paying its creditors or the company being unable to perform its contracts on time or at all. Other signs are less obvious: the company may have suffered a significant event or the company’s business model may no longer be viable. Once General Counsel has identified one or more factors, the article addressed how General Counsel can advise the company on steps to take.
- Steven Usdin