The Executive Guide to Corporate Bankruptcy

The Executive Guide to Corporate Bankruptcy

Journal Issue: 
Column Name: 
Journal Article: 
It's a weighty tome—722 pages or so (about the size of a Tom Clancy novel). The main thing, though, is that it was written by a capable and experienced group of bankruptcy lawyers. Tom Salerno is a cum laude graduate of Notre Dame Law School, Jordan Kroop is a magna cum laude graduate of the University of Virginia School of Law and Craig Hansen is a summa cum laude graduate of Temple University School of Law.

All of the authors have written extensively for prominent publications, all are with the same law firm in Phoenix (Squire, Sanders & Dempsey L.L.P.), and all are ABI members. Tom Salerno is a former ABI Board member and a contributing editor to the Journal.

The point is that the authors know what they are writing about, and they cover all aspects of corporate bankruptcy. Many can identify with the CEO who hangs on so long that when bankruptcy professionals are finally called in to assist in a reorganization, there is little to work with. Dealing with the recalcitrant executive of a failing corporation is only one of the practical problems addressed by the book.

To give you an idea of how the authors approach a difficult and complex subject, here are just a few of the sub-topics covered by the book:

  • "What is This 'Insolvency' Thing?"
  • "The Odds (How the Deck Is Stacked)"
  • "A Word about Retainers"
  • "Making the Transitions—Attitudinal Adjustments"
  • "Ten Myths about Reorganization"

Every issue and problem is viewed in a practical perspective and a writing style geared toward the businessperson. It is certainly an interesting and entertaining exposition, even for the experienced bankruptcy lawyer.

Almost every bankruptcy professional, whether lawyer, accountant or turnaround specialist, has had the uncomfortable task of explaining to corporate executives various aspects of bankruptcy. Those who have understand that the executive really does not want to know as much as he or she needs to know to help the bankruptcy professional save the business.


The typical captain of industry is focused on trying to continue the business "as usual" and avoiding the concerns raised by multiple meetings with the creditors' committee, secured creditors, court attendance and other activities that are far from business as usual.

The typical captain of industry is focused on trying to continue the business "as usual" and avoiding the concerns raised by multiple meetings with the creditors' committee, secured creditors, court attendance and other activities that are far from business as usual. The bankruptcy professional also knows who becomes the target of the executive's frustration with the system.

Tom Salerno and his co-authors have presented a solution for the executive's frustration blues. Hand the executive the book. Of course, you will need to read it yourself so you will know what the executive knows when he or she finishes the book. The title may not be all that snappy, but it is accurate: It is a "guide." Even with heavyweights like Enron faltering, there will be many executives, as well as bankruptcy professionals, who will need this guidance.

Journal Date: 
Saturday, June 1, 2002