Bay Ridge Lawyers Association hosts lecture on Chapter 11 bankruptcy basics

November 15, 2024 Robert Abruzzese, Courthouse Editor

Mario Romano (center), president of the Bay Ridge Lawyers Association, stands with presenters Mark Indelicato (left) of Thompson Coburn LLP and Frank Oswald (right) of Togut, Segal & Segal LLP, who led a CLE session on Chapter 11 bankruptcy at the association’s October meeting. Brooklyn Eagle photos by Mario Belluomo

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The Bay Ridge Lawyers Association, under the leadership of President Mario Romano, held its monthly CLE meeting at Mama Rao’s in Dyker Heights on Oct. 30.

Attorneys Mark S. Indelicato of Thompson Coburn LLP and Frank A. Oswald of Togut, Segal & Segal LLP presented a comprehensive lecture titled “The Basics of Chapter 11 of the Bankruptcy Code.”

Chapter 11 bankruptcy helps businesses reorganize their debts so they can keep running while working on a plan to pay back what they owe. The company stays in control of daily operations but is supervised by the court. The goal is to come up with a plan that lets the business recover while ensuring creditors get paid fairly.

The session covered the key elements of Chapter 11, including its purpose as a reorganization tool for businesses. Indelicato and Oswald explained that Chapter 11 allows companies to restructure their debts while continuing operations under the management of their existing boards unless a court-appointed trustee is required due to allegations of mismanagement. They outlined how the automatic stay provides debtors with immediate protection from creditors, ensuring businesses have the breathing room to negotiate with stakeholders.

From left: Daniel Luisi, Maria Neri, Stephen Chiaino, Hon. Janet McFarlane, and Grace Borrino. Brooklyn Eagle photos by Mario Belluomo

Hon. Brian Gottlieb (left) and Paul Nuccio. Brooklyn Eagle photos by Mario Belluomo

Gianna Famulari (standing center), Joann Monaco (right), and Margaret Stanton (sitting). Brooklyn Eagle photos by Mario Belluomo

William Gillen (left) and Hon Lai. Brooklyn Eagle photos by Mario Belluomo

Adam Kalish (left) and Eric DiNapoli. Brooklyn Eagle photos by Mario Belluomo

From left: Karen Emma, Rosa Pannitto, Mario Romano, and Yolanda Guadagnoli. Brooklyn Eagle photos by Mario Belluomo

A central focus of the lecture was the Chapter 11 plan process, which includes developing and confirming a reorganization plan to satisfy creditors and allow the company a “fresh start.” The speakers also highlighted the role of creditors’ committees, debtor-in-possession financing and the court’s power to approve sales of assets free of encumbrances.

The attorneys explained the importance of the bankruptcy court’s oversight in maintaining fairness and protecting the interests of all parties. They concluded by discussing the different types of bankruptcy cases, including prepackaged and traditional filings, and the complexities involved in each.