Excerpt from Practical Guidance

Best Practices For Financial Reporting During Ch. 11

Law360, New York ( May 28, 2014, 8:45 PM EDT) -- Tumultuous economic conditions and industry events can cause liquidity and other business challenges, forcing a company to seek protection under Chapter 11 of the Bankruptcy Code. As a means of reducing excessive debt, addressing major liabilities, and/or changing operational obligations, Chapter 11 provides a mechanism for a company to reorganize the business under a court-supervised process. This process, however, greatly increases the financial reporting requirements and, consequently, the resource demands on the debtor. Bankruptcy reporting entails four distinct areas of financial reporting and related work streams:...

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