As part of our ongoing mission to share insights into the world of Directors & Officers Insurance, we bring to you the first episode in our new series of The D&O Files.

In this episode we discuss the collapse of FTX Trading, and the ensuing scandal that unfolded. Key areas of the discussion includes the following:

• How did events unfold and what were the implications for directors?

• What types of claims did the directors face, and how might D&O Insurance have responded?
• What are the corporate governance lessons to be learned from this collapse?
• Does Tom Brady buy D&O Insurance?!

In episode 22 of the Rising Edge D&O Podcast, Richard and Owen are joined by Daniel Shamah, Partner at law firm O’Melveny & Myers, and Andrew Oldis, Partner at law firm Kaufman, Borgeest & Ryan.

As practitioners of D&O insurance working out of the UK, we deal with worldwide risks, including those emanating out the US.

Insolvency has always been a key risk for directors and officers, and with macroeconomic conditions pushing more companies to the brink, we expect to see increased risk in this area.

The process and risks arising from such an event vary across the globe, and it is important for practitioners and insureds to understand the nuances that exist from one jurisdiction to another.

In this episode we unpack the process that exists within the USA.

We discuss the interplay between the bankruptcy and arguably one of the most important assets for a director during an insolvency or restructuring event, the D&O insurance policy!

00.23 - 03.10: Richard and Owen introduce the topic and our guests.

03.15 - 11.24: Daniel explains what Chapter 11 in the US is and how it differs from other forms of bankruptcy.

11.24 - 13. 00: Owen and Daniel discuss the speed and complexity of US bankruptcy court proceedings.

13.00 - 23.58: Daniel and Andrew explain how D&O insurance comes into play in a bankruptcy event.

24.00 - 30.10: The trio discuss how insurance policies are increasingly being tailored for bankruptcy events and why that is helpful.

30.11 - 34.10: Daniel and Andrew explain how directors and officers and can mitigate the impact of decisions during bankruptcy proceedings.

34.11 - 36.00: Andrew discusses the role of the board of directors change during a bankruptcy and the key responsibilities during the process.

36.01 - 40.40: Andrew explains the role of outside counsel when representing a company in bankruptcy, how they can be helpful for individual directors and officers and the emotions and stress involved for Ds and Os.

40.41 - 42.49: Andrew gives his tips for how to manage the communication and relationships with various stakeholders during a bankruptcy event.

42.50 - 51.47: Daniel and Andrew share their important trends for insurers, directors and officers to consider in 2024 and why the ongoing Purdue Pharma Supreme Court case is so significant for future bankruptcy proceedings.

51.51 - 55.13: Owen shares his takeaways from the interview with Andrew and Daniel.

For more information on Rising Edge, visit our website.

The full archive of the Rising Edge D&O Podcast is available here.

In episode 21 of the Rising Edge D&O Podcast, Richard, Owen and Isabel are joined by James Wickes, partner at the law firm RPC, to discuss social mobility and what businesses in the financial services and legal sectors can do to drive change.

James took on the challenge of driving change himself when he founded Limitless London, a careers guidance programme which aims to level the playing field for young people from less privileged backgrounds.

Learn about the programme James has set up, the challenges he faced in setting it up, how he overcame those challenges, and you how to go about starting up and executing on such an initiative.

They find out what can be done to level the playing field, to attract the best talent, and to make the insurance industry a more diverse and inclusive place to work. And how organisations and individuals help to drive the change that is required.

For more information on Rising Edge and the full back catalogue of podcast episodes, visit the Rising Edge website.