Jay Carfagnini quoted in "Restructuring amid 'rocky shoals'" , National Post
Excerpt from "Restructuring amid 'rocky shoals", by Sandra Rubin:
Jay Carfagnini quoted:
"The risk of legal proceedings is with us all the time now - but it's definitely heightened in a restructuring scenario," says Jay Carfagnini, who heads the insolvency and restructuring group at Goodmans. "What drives it in a restructuring is that there's not enough money to go around. Its a financial-distress situation, there's not enough money to pay everybody. So there are opportunities for leverage and gain that otherwise wouldn't be there, which means somebody's bound to be unhappy and looking to alternative sources of repayment - one of which is directors and officers or their insurance policies."