Banks, Clients Face Difficult Choices in Chapter 11 Weighing Legal, Practical, Strategic Considerations
by Victor Owens
Union Bank of California NA; Irvine, Calif.
When a company or an individual makes the transition into chapter 11, a myriad of legal, practical and strategic decisions must be made. One of the toughest decisions a debtor-in-possession (DIP) must make is whether or not to stay with its current bank.
A debtor’s decision to move a banking relationship can depend on a variety of circumstances, including the use of cash collateral or offset rights. It may be prudent for a debtor to maintain its existing operating relationship, especially when cash-management structures are in place or if the same bank provides crucial financing to maintain the firm’s deposit accounts.
2006 Winter Leadership Conference Minutes
The Technology and Telecom Committee held a joint meeting with the Investment Banking Committee at the Winter Leadership Conference. Under the revised charter of the Technology and Telecom Committee, the discussion centered on virtual data rooms. The panel consisted of members of both committees and invited industry experts. The panel was very well attended and there were two $500 certificates given to all attendees of the meeting toward the purchase of a virtual data room. The next panel will be at the Annual Spring Meeting in Washington, D.C. and will focus on handheld devices.