By: Arian Eghbali, OLYMPUS GUARDIANS LLC
As restructuring activity continues across retail, healthcare, energy, aerospace, and technology sectors, much of the public attention in Chapter 11 cases remains focused on first-day motions, DIP financing, and confirmation hearings. But according to Arian Eghbali, a Los Angeles–based restructuring professional and founder of Olympus Guardians, the most consequential phase for unsecured creditors often begins after confirmation.
Eghbali has served in trustee, fiduciary, and creditor advisory roles in complex Chapter 11 and post-confirmation trust matters across multiple industries. Through Olympus Guardians — an advisory firm focused on unsecured creditor representation, trust administration, and recovery strategy — he works alongside committees, trustees, and legal professionals to navigate the operational realities that follow court approval of a restructuring plan.
“People focus on the headline events,” he says. “But for unsecured creditors, recovery is determined by execution — claims reconciliation, asset identification, and disciplined oversight after confirmation.”
The Execution Gap
Over the past several years, a recurring pattern has emerged in mid-market Chapter 11 cases: incomplete financial records and compressed administrative timelines.
“When companies approach insolvency, accounting infrastructure often deteriorates,” Eghbali explains. “Staff turnover, software disruptions, delayed reconciliations — by the time a liquidation trustee steps in, the books may not be in distributable condition.”
In those situations, fiduciaries frequently must:
- Retrieve missing bank statements
- Reconstruct general ledgers
- Verify tax filings
- Normalize claims data
- Identify unaccounted-for assets
While largely invisible to the public, this reconstruction work directly impacts the integrity and timing of creditor distributions.
The Overlooked Recovery Pools
In post-confirmation trust environments, secondary asset categories are receiving increased attention.
These may include:
- Tax refunds and credits
- Employment-related incentives
- Avoidance recoveries
- Insurance proceeds
- Dormant accounts
- Escrow balances
“In certain cases, overlooked assets can materially shift distribution percentages,” Eghbali notes. “But identifying them requires coordination between legal strategy and financial analysis.”
As more cases transition toward liquidation pathways rather than operational reorganizations, identifying these ancillary assets has become central to maximizing unsecured creditor recoveries.
Unsecured Creditors’ Committees: A Strategic Evolution
Eghbali also observes a broader shift in how unsecured creditors’ committees approach cases.
“In today’s capital markets, secured lenders often enter Chapter 11 with strong collateral positions,” he says. “That means committees must engage early — reviewing lien validity, analyzing valuation models, and evaluating potential causes of action.”
Rather than reacting solely to debtor proposals, committees increasingly emphasize financial diligence, scrutiny of secured claims, and post-confirmation governance structures.
Fiduciary Accountability and Oversight
As post-confirmation trusts become more common, scrutiny of fiduciary conduct has intensified.
“Trust administration requires transparent communication and defensible documentation,” Eghbali explains. “Distribution delays or incomplete records can create tension. The fiduciary obligation is not just legal — it is operational.”
He notes that oversight committees and creditor groups now expect disciplined reporting, structured reconciliation, and clear recovery pathways.
A Broader Restructuring Reality
Although major restructurings often capture media attention, many recovery outcomes are determined quietly — through reconciliation processes, asset tracing, and trust governance.
“Chapter 11 is a framework,” Eghbali says. “But recovery is execution. And execution happens after the headlines fade.”
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal or financial advice. While every effort has been made to ensure the accuracy of the content, it is recommended that you consult with a qualified professional for specific guidance related to your individual circumstances.
