"Liabilities to Watch for After Bankruptcy," Buyouts Magazine

"Liabilities to Watch for After Bankruptcy," an article authored by D. Tyler Nurnberg and Stephen C. Koval, was featured in the July 6, 2009 issue of Buyouts.  The article discusses the potential litigation aftermath for private equity firms when a distressed portfolio company is restructured and its unsecured creditors seek for ways to hold the sponsor accountable for the company's collapse.  The article considers three theories in particular -- fraudulent leveraged buyouts (including transactions with "opco/propco" structures), dividend recapitalizations, and deepening insolvency.