New York Partner Stephanie Wickouski authored an article for Turnarounds & Workouts examining the sentencing of Daniel Kamensky, former chairman of the Neiman Marcus creditors committee. Wickouski details the charges against Kamensky and subsequent trial as well as five themes that emanate from the Kamensky sentence and its impact on the restructuring community. Wickouski noted, “The case is a bellwether portending more constraints on committee members, particularly insofar as extraction of value from estate assets is concerned. The case may lead to more scrutiny not only on committees, but on all other aspects of the bankruptcy process that have been hidden from public view. These include the negotiation of bankruptcy financing, rights offerings, and plan support consideration, and a host of other arrangements that can dramatically shift the recoveries from one group to another.”
To read the full article, click here. Get your copy of the June 2021 Turnarounds & Workouts here. Turnarounds & Workouts is published by Beard Group, Inc., serving corporate restructuring professionals since 1987.
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