The second topic our Contributors take on is the practice of appointing “independent directors” for troubled companies, often on the eve of bankruptcy. We received a wide range of responses from our Contributors with many feeling the process is “at least superficially, if not substantively, flawed” (Albanese). That was not a uniform reaction though and the diversity of our Contributors showed the differing views of the market. Many did not want the actions of a few bad apples to overshadow the essential role independent directors can play in “stabilizing” an uncertain situation (Heimowitz) and for calling out “bullsh*t” if necessary (Lederman).…
If you are going to run into a burning fire, you better know how to use a hose … and actually have some time to fight the fire. In today’s world of incredibly complex restructurings, experienced independent directors, who have time to devote to the situation, play a vital and necessary role in helping management teams, retained advisors and their fellow board members navigate through turbulent waters.