Schnader’s Barry Bressler Quoted in Article on Bankruptcy

Barry Bressler, chair of the Firm’s creditors’ rights real estate practice and a partner in the Philadelphia office, was quoted in an article titled “Bankruptcy: A Complex Dance,” published in The Philadelphia Inquirer on February 25, 2009. The article discussed the complexities of the bankruptcy process for both debtors and creditors. While investors and creditors often take a substantial hit in bankruptcy proceedings, employees of a surviving company are also greatly affected if they have to accept lower wages and benefits. Mr. Bressler explained that employees were sometimes willing to accept lower compensation in exchange for an ownership interest. Such arrangements, and discussions of how much or even whether the lenders might accept a reduction in the amount they are owed, are subject to negotiation as the proceedings unfold. “That is the art of being a bankruptcy lawyer and the art of being a financial adviser to the debtor, being able to know the pressure points of the various groups,” said Mr. Bressler.