Restructure This! Episode 22: D&O Risks in an Unstable Economy with Paul Figliozzi and Michael Gil of Marsh
Sheppard Mullin's Restructure THIS! podcast explores the latest trends and controversies in Chapter 11 bankruptcy, commercial insolvency and distressed investing. In this episode, Paul Figliozzi and Michael Gil of Marsh join us to discuss the critical issue of director and officer risk, particularly in the context of an unstable economy and financially distressed companies.
What We Discussed in This Episode:
- How has the recent uptick in restructuring activity and the banking crisis impacted the D&O market in terms of the claims you're seeing and with respect to premiums?
- Assuming the banking panic is unlikely to abate anytime soon, what advice would you offer companies in the financial sector and elsewhere?
- Are you seeing more clients request a review of their D&O programs?
- What concerns or issues are typically revealed in these reviews?
- How often are D&O claims asserted in the context of a Chapter 11 filing actually successful?
- Now that we're on the trailing edge of the SPAC trend, do you perceive any unique risks to directors and officers, especially related to de-SPACing?
- What common mistakes or misconceptions do you see in the SPAC market?
- Have you seen any instances where ESG forms the basis of a D&O claim?
About Michael Gil
Michael Gil is the co-leader of the Turnaround and Restructuring Practice and a senior client advisor in Marsh’s Financial and Professional (FINPRO) Practice. FINPRO’s Turnaround and Restructuring practice provides solutions through a team of technical experts that help clients navigate all aspects of insurance placements in the context of turnaround, restructurings, bankruptcy and emergence.
In this role, he is responsible for the management of select client accounts. Those responsibilities include overseeing client service teams in formulating the strategy, structure, coverage analysis, and placement of financial lines insurance programs including directors and officers liability, employment practices liability insurance, professional liability (errors & omissions), fiduciary liability and fidelity (commercial crime). He also has significant experience in advising clients on the insurance implications of M&A activity and initial public offerings.
His clients range from large public organizations to private companies. Michael’s strengths include high responsiveness, attention to detail, and creativity in formulating insurance solutions, together with an ability to provide significant insights on policy wording and coverages from legal and claims perspectives. Michael has strong professional relationships with underwriters in the marketplace that drive best in class coverage terms and program pricing for his clients.
About Paul Figliozz
Paul Figliozzi is a Managing Director of Marsh Inc., in the Financial and Professional Services (FINPRO) division and a member of the FINPRO Executive Leadership Team. Paul oversees FINPRO’s Private Equity and M&A (PEMA) practice and co-leads both the Turnaround & Restructuring Group (T&RG) and the Special Purpose Acquisition Company (SPAC) Practice.
FINPRO PEMA consists of two brokerage teams with fifteen colleagues and is focused on the risk transfer needs of PE firms as well as their portfolio companies. Given the broad reach of PE funds, the portfolio company clients stretch across private and public markets. The team brings an industry focus with concentration in the Retail, Life Science, Energy, Communications, Media and Technology sectors. The T&RG advises clients throughout the life cycle of a financial restructuring. The SPAC Practice is dedicated to the FINPRO insurance needs of SPACs, SPAC sponsors and SPAC targets.
Prior to his current role, Paul led the FINPRO Risk Management group for the New York Metro region. FINPRO’s New York Risk Management group is dedicated to the needs of publicly traded companies relative to management liability insurance, Cyber liability and other financial lines coverages.
Paul and his team members advise clients on all aspects of management liability insurance, including counseling them with respect to D&O insurance in connection with securities and derivative litigation, government investigations, initial public offerings, spin-offs, mergers, acquisitions and bankruptcies. Paul also advises clients on how to maximize insurance recoveries in claim situations and assists with coverage disputes and client litigation with insurers.
About Justin Bernbrock
Justin Bernbrock is a partner in the Finance and Bankruptcy Practice Group in Sheppard Mullin's Chicago office, where he focuses on all aspects of corporate restructuring, bankruptcy and financial distress. He represents clients across a wide range of matters, including debtor and creditor representations. He has substantial experience in out-of-court and in-court restructurings, primarily in the Southern District of New York, Eastern District of Virginia, District of Delaware and Southern District of Texas.
Prior to private practice, Justin served with distinction as an Aviation Warfare Systems Operator in Patrol Squadron FIVE and as a Weapons Tactics Instructor in Patrol and Reconnaissance Wing ELEVEN. During his nearly 10 years of active duty in the United States Navy, he was awarded the Navy Commendation Medal twice, including once for meritorious service during combat operations in Iraq. Justin also received the Global War on Terrorism Medal for his service in Kandahar, Afghanistan.
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