The practice of appointing one or more independent directors to the boards of distressed companies has not only proliferated in recent years, but has become the subject of increasing controversy. In this episode of the Restructure THIS! podcast, John Dubel discusses, among other things, the proper role of an independent director in a restructuring and weighs in on whether he believes the current independent director framework in chapter 11 is broken. In doing so, John addresses some of the most significant criticisms that have been levied against independent directors, including that independent directors often lack disinterestedness and are nothing more than “repeat players” that advocate for preordained outcomes.
John has over thirty-five years of experience in the restructuring space. He has served on the board, or as part of the management of, some of the largest companies in the world, including as Special Committee Chairman of Purdue Pharma, CEO and CRO of SunEdison, CFO of Worldcom during its chapter 11 case, and as independent board member for Highland Capital Management, LP and WMC Mortgage, LLC. He is currently the CEO of Dubel & Associates, LLC.
For more on these issues, listen to Episode 7 of Restructure THIS! hosted by Sheppard Mullin partner Justin Bernbrock.