By tapping into a small group of legal, technical, and financial professionals practicing in this rapidly evolving area of alternative environmental liability disposition, clients can efficiently and fully resolve environmental obligations/liabilities in bankruptcy and truly emerge with a fresh start (at least with respect to environmental issues). This is particularly critical as, despite some signs of recovery, the ongoing uncertain economic climate will continue to challenge the cash flow and balance sheets of many previously financially sound companies, and will place a spotlight on the risks posed by legacy environmental liabilities to creditors and potential successors.
The resolution of environmental liabilities in bankruptcy represents a particular challenge. There is a basic tension between the goals of environmental law and bankruptcy law and, until recently, there was a dearth of legal precedent upon which counsel could rely in developing a bankruptcy strategy for the resolution of environmental liabilities. However, the high volume of recent bankruptcy activity has resulted in increased precedent and therefore greater guidance in this area. In addition, this volume of work has resulted in the development of more efficient resolution strategies for corporations with environmental liabilities facing Chapter 11 bankruptcy.