At Valtus Alliance, we rely on a worldwide network of restructuring experts – because legislation and restructuring practices vary significantly from country to country. In this interview Joe Poling, president and Chief Revenue Officer of Think Consulting, explains to Christian Kniescheck, Partner at Management Factory – A Valtus Company, what Chapter 11 means in practice and that Private Equity plays an important role in restructuring in the US.
Joe brings extensive experience in scaling and transforming businesses. Throughout his career, whether leading his own companies, serving in executive roles, or advising business leader, he has consistently validated his core beliefs about transformation through real-world impact. Please note that Joe is not a lawyer, and nothing shared here should be considered legal advice. Christian, who has been working in Austria and Germany as an interim CEO, CFO, CRO (Chief Restructuring Officer) and CTO (Chief Transformation Officer), has been Austria’s “Interim Manager of the year” in 2021. He received his MBA at the University of Delaware in 2000.
What makes the legal framework for insolvency and restructuring unique in your country?
The United States legal framework, particularly under Chapter 11 of the Bankruptcy Code, is distinct due to its debtor-in-possession model. It allows management to remain in control while executing the restructuring. The process emphasizes business continuity, creditor negotiation, and operational reset through mechanisms such as lease rejections, contract terminations, and asset sales. It is structured, flexible, and fast-moving, making it a powerful tool when applied with strategic discipline.
Are there mandatory reports or expert opinions required in the event of a liquidity crisis or imminent insolvency?
There is no universal legal requirement for mandatory reports in the early stages of a liquidity crisis. However, once a company enters Chapter 11, it must produce detailed financial schedules, statements of affairs, and regular operating reports under court oversight. Outside of formal proceedings, stakeholders such as lenders and boards increasingly demand third-party reviews, typically in the form of 13-week cash flows, business viability assessments, and turnaround plans to guide decision-making and protect fiduciary interests.
In your experience, what is the most common mistake companies make in the early stages of a liquidity crisis?
The most common mistake is waiting too long. Companies often operate in denial, hoping that short-term wins or market changes will resolve deeper structural problems. This delay limits the tools available and increases costs. Inaction usually results from misalignment among leadership, fear of reputational damage, and an emotional attachment to the past. The earlier corrective action is taken, the greater the range of options and the higher the probability of recovery.
At what point, and in what role, should an external restructuring expert be brought in – and who should mandate them?
External restructuring support should be engaged as soon as signs of financial distress or operational instability emerge. Think Consulting is often brought in before a formal filing, when out-of-court solutions are still viable. Our roles include Chief Restructuring Officer, interim Chief Financial Officer, board-level advisor, or embedded program leader. Engagement is typically mandated by the board, ownership group, private equity sponsor, or lender group. When we are brought in early, we can stabilize the situation and avoid escalation.
What is your view on the use of protective shield proceedings (or equivalent instruments) as part of a restructuring strategy? Are there such instruments in the US?
In the United States, the Chapter 11 process itself acts as a protective shield. Once a filing is made, the automatic stay provision prevents creditors from pursuing collection or enforcement actions. This creates the breathing room necessary to restructure. While some countries treat this kind of protection as exceptional, in the United States it is an embedded feature of the legal structure and is frequently used as both a tactical and strategic advantage.
Do employees in your country continue to receive their salaries and bonuses in the event of insolvency, or do they lose the entire or part of the wages?
In a Chapter 11 proceeding, employee wages earned prior to filing are considered unsecured claims, though a portion is given priority status under the Bankruptcy Code. Post-filing wages and salaries are treated as administrative expenses and are expected to be paid in the normal course of business. Bonuses are subject to additional court review and may be restructured or eliminated unless tied to a Key Employee Incentive Plan approved by the court.
In cases of insolvency or bankruptcy, how do interim managers working in restructuring ensure they receive their remuneration?
Professional fees and compensation for interim executives are subject to court approval in Chapter 11 and are treated as administrative priority claims. This ensures they are paid ahead of unsecured creditors. In out-of-court restructurings, we negotiate clear terms upfront, including retainer structures, milestone payments, and board-level reporting. Trust is important, but structured contracts and a strong track record of delivery are what ultimately secure compensation.
Which case in your career has most profoundly shaped your view of restructuring—and what did you learn from it?
A formative experience involved a founder-led services business that resisted structural change despite all indicators pointing to the need for action. The business had a viable market, assets of value, and multiple restructuring paths available. However, emotional attachment and fear of change ultimately paralyze leadership. The company filed too late, and value was lost. This case taught me that mindset, not mechanics, is often the biggest barrier to successful restructuring.
How established is private equity in your country with regard to restructuring? Does private equity play a significant role or do banks and existing shareholders remain the key stakeholders?
Private equity is extremely well established in United States restructuring. Many distressed investment funds specialize in acquiring underperforming businesses or assets at a discount and repositioning them. In many cases, private equity firms are not only the owners but also the solution providers—bringing both capital and operational expertise. While banks and traditional shareholders are important stakeholders, private equity firms often lead or facilitate the recovery strategy.
Please note that Joe is not a lawyer, and nothing shared here should be considered legal advice.