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O’Melveny’s Rapisardi, Zujkowski Co-Author NYLJ Article on Key Issue for Directors of Insolvent Entities

November 14, 2014 O'Melveny & Myers partner John Rapisardi and counsel Joseph Zujkowski co-authored the November 14, 2014, New York Law Journal article, "Revisiting Key Issue for Directors of Insolvent Entities.” The piece discusses the fiduciary duties of officers and directors of insolvent Delaware corporations through the lens of Structured Products Company v. Vertin, when the Chancery Court dismissed certain derivative claims brought by a creditor on behalf of Athilon Capital Corp. alleging breach of fiduciary duties by the company's non-independent directors. According to the authors, "portions of the decision related to the change in investment guidelines should provide significant comfort to fiduciaries of insolvent corporations, especially those contemplating initiatives that may increase value for the benefit of all creditors and equity holders but increase risks borne by certain parties."

Rapisardi is co-chair of O'Melveny's Global Restructuring Practice and resides in the Firm's New York office. Zujkowski is a member of the Restructuring Practice and also resides in the New York office.