When a company files for bankruptcy, many believe equity holders should accept their place within general unsecured creditor committees, and that holders with their own committee might only complicate reorganizations. The fact is, equity committees are becoming more popular and have been successful in maximizing value for stakeholders. Attend this webinar to learn from the experts how, when and why to use an equity committee.

In most Chapter 11 cases some portion of the debt is impaired and there is no equity value remaining. However, there are scenarios where equity has a chance to be "in the money" but there needs to be a change to the current conditions subsequent to the filing that increases enterprise value. This section examines what situations lend themselves to an equity committee, and how to get approval from the trustee.

Because there may be no perceived equity value in a situation, and because equity holders may have substantial differences in their cost basis, developing a strategy acceptable to all stakeholders is difficult. It is imperative that advisors and lawyers have a coordinated and consistent message. Equity holders are concerned with financial recovery, and this section focuses on being creative (and aggressive) while maximizing value.

Advanced Lighting Technologies filed Chapter 11 and emerged under a $175 million plan of reorganization. While the company's common stock traded in the 8 to 10 cents range for much of the bankruptcy, equity holders eventually received a recovery of 72 cents a share. Panelists who represented the company during their reorganization discuss what made this equity committee so successful.