REID SKIBELL AND JOE GALLAGHER PUBLISH LAW360 ARTICLE ON SEC RECEIVERSHIPS AND BANKRUPTCY

March 11, 2021

Partners Reid Skibell and Joe Gallagher co-authored a recent article for Law360 examining a company’s options when facing insolvency from a U.S. Securities and Exchange Commission (SEC) enforcement action. The attorneys note that the SEC is increasingly appointing receivers in these situations, and provide analysis of a recent case. They also discuss the benefits of filing for Chapter 11 protection before this happens due to how trustees operate under the Bankruptcy Code.

“While a bankruptcy filing would not prevent the SEC from collecting on some or all of a judgment, as the commission would undoubtedly have a seat at the creditors' table, the rules governing a bankruptcy trustee are more well defined, predictable and creditor-friendly than the broad equitable principles that guide SEC receivers,” write Skibell and Gallagher.

Read the entire article here.