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At CE Interim, we work closely with restructuring experts across the globe to support clients navigating complex financial distress. Our work often spans legal systems, crisis strategies, and execution-first leadership.

In this cross-border exchange, we explore the restructuring & turnaround landscape in the United States with insights from Joe Poling, President and CRO of Think Consulting, in conversation with Christian Kniescheck, Partner at Management Factory and former “Interim Manager of the Year” in Austria.

What does Chapter 11 mean in practice? How do interim executives contribute to a turnaround? And why is private equity often the key player in US restructurings? Let’s dive in.

What makes the legal framework for insolvency and restructuring unique in your country?

The United States operates under a debtor-in-possession model. In a Chapter 11 proceeding, the company remains in control of its operations during the restructuring. This gives management the chance to reset operations while negotiating with creditors and continuing business.

The system is flexible and designed for speed. Companies can reject leases, terminate contracts, and sell assets, all within the protection of the legal process. When used strategically, Chapter 11 can be a powerful tool to preserve enterprise value.

Are there mandatory reports or expert opinions required in the event of a liquidity crisis?

Before formal filing, there are no universal legal requirements. But in practice, stakeholders such as lenders or boards will often request third-party assessments, including 13-week cash flows, business reviews, and turnaround plans.

Once inside Chapter 11, companies must provide detailed financial schedules, operating reports, and statements of affairs. Court oversight adds structure and accountability to the process.

What is the most common mistake companies make in the early stages of a liquidity crisis?

Waiting too long. Many leadership teams remain in denial or hope market dynamics will improve. Emotional attachment, reputational fear, or leadership misalignment delay action. But time is critical.

Early intervention expands your options. Delay almost always leads to higher costs and diminished enterprise value.

At what point should an external restructuring expert be brought in, and who mandates them?

An external expert should be brought in as soon as signs of operational instability or cash pressure emerge. At Think Consulting, we are often brought in pre-filing when out-of-court options still exist.

Typical mandates include Chief Restructuring Officer (CRO), interim CFO, board advisor, or program lead. We’re engaged by boards, PE sponsors, lenders, or ownership groups. Early involvement increases stability and helps avoid escalation.

Is there a protective shield equivalent in the US?

Yes. Chapter 11 provides an automatic stay, which blocks creditors from pursuing enforcement actions during the restructuring. This gives companies essential breathing space.

Unlike some countries where protection is rare or exceptional, in the United States it is a standard and widely used feature of the system.

Do employees continue receiving salaries and bonuses during insolvency?

Salaries earned after a Chapter 11 filing are treated as administrative expenses and must be paid as usual. Wages earned before filing are considered unsecured claims, but with partial priority protections.

Bonuses are subject to court review and must be part of an approved Key Employee Incentive Plan (KEIP) to be enforceable. Retention or restructuring of bonuses is common, but not guaranteed.

How do interim executives ensure they receive their remuneration?

In Chapter 11, professional fees and interim compensation are treated as priority claims and require court approval. This ensures they are paid ahead of general unsecured creditors.

In out-of-court restructurings, clear contracts and structured payments are essential. We typically include upfront fees, milestone payments, and direct board reporting to protect our role and ensure accountability.

Can you describe a restructuring case that shaped your view of the process?

One case involved a founder-led services company. The business had real potential, but the leadership was emotionally attached to old structures and resisted change. They delayed critical action and ultimately filed too late.

We lost value not because the tools weren’t there, but because the mindset was stuck. The lesson: mindset, not mechanics, is often the biggest obstacle to a successful restructuring.

How established is private equity in US restructuring?

Private equity is central to restructuring in the United States. Many firms specialize in distressed investing, acquiring underperforming businesses and leading operational turnaround.

They’re often both the owner and the execution partner. While banks and existing shareholders remain stakeholders, PE firms typically lead recovery, bringing capital and expertise to the table.

Final thoughts?

Restructuring in the US is fast-paced, highly strategic, and opportunity-driven. But timing is everything. The earlier you act, the more options remain on the table. Bringing in interim experts before formal action can often mean the difference between recovery and collapse.

Need help navigating financial distress in the United States?

CE Interim works with private equity sponsors, boards, and multinationals across the US market, deploying seasoned CROs, interim CFOs, and restructuring experts. We act fast, align interests, and help stabilize the business when timing is critical.

Explore our Restructuring Services