The Closely Held Business in Financial Trouble: Unraveling Conflicts Within the “Family”
When financial trouble hits the closely held business, a more complicated structure often lurks below the surface. What the “family” views as a single business may actually be several entities with a long history of intercompany transactions. Conversely, one generation may have transitioned out of the business but might still be receiving compensation from the business under the control of the next generation. The problems are heightened when your contact at the client is an individual who wears various “hats,” including president, board chair, CEO and potential defendant. How does the professional deal with the conflicts and consequences of transactions with insiders and affiliates, particularly where the financial resources of the business and individuals are already stretched thin before adding the layer of professionals that come with any bankruptcy proceeding? This panel of experienced restructuring professionals discusses the legal, ethical and financial issues raised by family conflicts, and provide their unique legal insights and practical advice.