Bankruptcy as a tool for resolving government investigations

Thursday, November 7, 2024

Today’s government enforcement environment is evolving and expanding at a rapid pace. Government compliance demands and the cost of responding to enforcement actions often lead to financial distress – while at the same time leaving the target company with an overhang of risk that creates difficulties in raising capital, selling assets, or implementing growth business plans.

Developing and implementing innovative strategies in settlement negotiations when faced with a government investigation can be crucial in mitigating financial liabilities and preserving going concern value. The Bankruptcy Code provides an effective tool for companies to use in settlement negotiations – including sales of assets free and clear of government claims, expedited estimation hearings to cap government claims, and the automatic stay to block government enforcement of monetary claims.

Partners from DLA Piper’s White Collar and Restructuring teams discussed:

• Current trends in government investigations
• Strategies for using bankruptcy as a lever in settlement negotiations with the government, and
• How to understand and apply fair market and liquidation valuations of assets in furtherance of those settlement negotiations.

CLE credit was offered for this event. 

For more information
Please contact Halie Bryant with questions.