Reviving Giants

Why Liability Maneuvers Fail: Judge Kaplan on Spirit Airlines, Rite Aid, and Overleveraged Giants

In this episode, we sit down with Hon. Michael B. Kaplan of the District of New Jersey to go inside the rarely seen world of bankruptcy from the judge’s chair. Drawing on years of overseeing high-profile Chapter 11s and small consumer cases, Judge Kaplan talks through what actually happens in those “first day” hearings, why so many liability management deals and quick restructurings fall short, and how often operational problems get ignored in favor of balance-sheet fixes. The conversation explores the human side of the work: what it’s like to carry the weight of decisions that affect jobs, communities, and families, and the tension between what feels fair and what the Bankruptcy Code demands. Judge Kaplan also reflects on how the practice has evolved with private equity, private credit, rising fees, and faster timelines, and what those shifts mean for the future of Chapter 11. 🎧 Episode Highlights [03:02]: The high stakes of decisions that reshape lives and companies [05:08]: “How can I help?:” as his courtroom philosophy [08:55]: Why liability management deals often fail struggling companies [13:40]: The human toll of foreclosures, evictions, and underwater homes [17:33]: How Chapter 11 shifted from reorganization to runway extension 🔑 Key Takeaways: ● Bankruptcy, in Judge Kaplan’s view, is fundamentally a problem‑solving arena rather than a ritual of failure. He emphasizes that judges sit at the crossroads of law, business, and human impact, making rapid decisions that can determine whether companies survive, liquidate, or quietly wind down. The stakes are measured not only in dollars, but in jobs, homes, and entire communities that live with the consequences of each ruling. ● Many high-profile restructurings fail because they treat Chapter 11 as a way to “extend the runway” instead of fixing the underlying business. Judge Kaplan sees too many liability management exercises and quick, milestone-driven cases that focus on capital structures and buzzword excuses—COVID, interest rates, tariffs—while ignoring core operational issues like broken business models, footprints, labor costs, and management failures. Without confronting those realities, he argues, even the most sophisticated financial engineering simply delays an inevitable collapse. ● Great outcomes in bankruptcy depend on the quality and mindset of the professionals in the room. Judge Kaplan looks for counsel, CROs, and advisors who truly understand the business, manage client expectations, listen to the court’s questions, and can translate complex financial and operational stories into clear evidence. Reputation, preparation, and candor matter: the best practitioners help the judge make informed decisions, while recognizing that the law, not personal preference, ultimately constrains what “fair” can look like in any given case. 👤 Guest Spotlight: Hon. Michael B. Kaplan Hon. Michael B. Kaplan is a United States Bankruptcy Judge for the District of New Jersey and a former chief judge of the court, with decades of experience deciding some of the nation’s most complex restructurings and liquidations. Before taking the bench, he served as a practitioner and Chapter 7 and 13 trustee, giving him a ground-level view of both business reorganizations and consumer financial distress. Known for his practical, problem‑solving approach, Judge Kaplan has presided over high-profile Chapter 11 cases while remaining deeply attuned to the human impact of foreclosures, evictions, and failed turnarounds on ordinary people. Stay Connected: ● ⁠https://www.macco.group⁠ [https://www.macco.group] ● ⁠https://www.linkedin.com/in/drewmcmanigle⁠ [https://www.linkedin.com/in/drewmcmanigle] ● ⁠https://www.njb.uscourts.gov/content/honorable-michael-b-kaplan⁠ [https://www.njb.uscourts.gov/content/honorable-michael-b-kaplan] Produced by Speakerbox Media.

Corporate Crisis Playbook: The Turnaround Strategy Becky Roof Uses to Save Businesses

Drew sits down with turnaround veteran Becky Roof to explore the high-stakes world of corporate restructuring and the accidental career paths that lead people into it. Becky shares stories from decades of crisis leadership, including stepping in as interim CFO during Kodak’s bankruptcy and navigating complex negotiations with creditors, pensions, and global stakeholders to preserve value and jobs. The conversation dives into what it really takes to lead when companies run out of liquidity, employees fear for their futures, and the path forward isn’t clear. Becky also looks back on mentorship, the evolution of the restructuring industry, and what it meant to build a career as a woman in a historically male-dominated field. 🎧 Episode Highlights: [06:28]: The bankruptcy that pulled Becky into restructuring [07:17]: The mentors who shaped Becky’s career [29:44]: Becoming Kodak’s interim CFO during bankruptcy [38:57]: The case that almost got Becky arrested in Italy [45:00]: Becky’s advice for the next Generation of turnaround leaders 🔑 Key Takeaways: ● While restructuring often focuses on capital structures and liquidity, Becky emphasizes the human side of crisis leadership. Communicating honestly with employees, acknowledging uncertainty, and preserving as many jobs as possible are central to responsible turnaround work. For Becky, the day telling someone their job is eliminated stops hurting is the day it’s time to leave the profession. ● Successful restructurings require creativity under extreme pressure. Cases like Kodak showed how turnaround leaders must constantly search for unconventional solutions when time and liquidity are running out. By identifying hidden pockets of value and negotiating complex compromises, such as separating business units and resolving pension claims, teams can create paths to survival that initially seem impossible. ● Effective turnarounds require a disciplined crisis playbook. Becky emphasizes starting with a clear understanding of the business, maintaining constant communication with stakeholders, and aligning management, creditors, and advisors around a realistic strategy. Transparency, liquidity management, and prioritizing what is urgent versus what is truly important are critical steps in stabilizing a company and creating a path toward recovery. 👤 Guest Spotlight: Becky Roof Becky Roof is a former Partner and Managing Director at AlixPartners and one of the most respected turnaround and restructuring leaders in the industry. With decades of experience as an advisor and interim CFO in complex, high-stakes situations, she has helped companies navigate bankruptcies, strategic restructurings, and financial transformations across global markets. Becky also played a key role in building AlixPartners’ Houston office and is known for her ability to step into crisis situations, earn trust quickly, and guide leadership teams through pivotal decisions. Stay Connected: ⁠https://www.macco.group/⁠ [%E2%81%A0https://www.macco.group/%E2%81%A0] ⁠https://www.linkedin.com/in/drewmcmanigle/⁠ [%E2%81%A0https://www.linkedin.com/in/drewmcmanigle/%E2%81%A0] ⁠https://www.linkedin.com/in/becky-roof/⁠ [%E2%81%A0https://www.linkedin.com/in/becky-roof/%E2%81%A0] Produced by Speakerbox Media.

When the Banks Failed: Lessons from the 1980s Texas Oil Bust Part 2

In part two of this episode, Drew, Berry, and Charlie look back on the cases that shaped modern restructuring: from the chaotic El Paso refinery bankruptcy to the high-stakes battles inside Enron. They share firsthand stories of IRS shutdowns, courtroom showdowns, copper price crashes, and creditor warfare that redefined how Chapter 11 works in practice. The episode explores how bankruptcy evolved from a scrappy, Wild West profession into a complex, high-dollar industry driven by sophisticated capital structures and venue strategy. Along the way, they debate lender-on-lender violence, mass tort bankruptcies, and whether the system still rewards creativity or just balance sheet engineering. It’s a candid look at how the biggest collapses built today’s restructuring playbook. 🎧 Episode Highlights ● [03:52]: A Risk That Recovered $30M ● [05:24]: The Refinery Case That Shook Texas ● [08:30]: When the Court Demanded Proof ● [14:29]: Patience, Copper, and a Comeback ● [33:01]: Enron and the New Era of Restructuring 🔑 Key Takeaways: ● The El Paso refinery collapse showed how an unprepared Chapter 11 filing can accelerate failure instead of prevent it. When IRS liens triggered a reactive bankruptcy without evidence, financing, or a clear strategy, the court’s refusal to bend the rules led to an immediate shutdown and hundreds of lost jobs. In restructuring, process, preparation, and proof matter as much as urgency. ● The four-year Asarco bankruptcy demonstrated that restructuring is often a long game shaped by external forces like commodity cycles. Rising and falling copper prices completely changed creditor leverage, settlement dynamics, and ultimate ownership. Sometimes survival depends less on legal maneuvering and more on understanding markets and waiting for the right moment to act. ● From Enron’s creditor committee infighting to today’s lender-on-lender battles and complex capital structures, bankruptcy has evolved into a high-stakes arena dominated by sophisticated players. Yet beneath the balance sheet engineering, the core tension remains: is the goal to truly fix the business, or simply to rearrange financial claims? The answer continues to shape the future of the restructuring profession. 👤 Guest Spotlight: Berry Spears Berry D. Spears is a partner at Keller Benvenutti Kim LLP with a nationally recognized bankruptcy and restructuring practice rooted in decades of hands-on experience. Over the course of his career, he has represented virtually every stakeholder in a financial crisis from debtors and creditors to boards, lenders, and committees, bringing pragmatic, creative solutions to complex restructurings across industries including energy, healthcare, financial services, and real estate. Charles Beckham Charles Beckham is a partner at Haynes Boone and a nationally respected restructuring and bankruptcy lawyer with deep roots in complex financial crises. He built his career during the West Texas oil collapse of the 1980s, representing banks, the FDIC, and other stakeholders through some of the region’s most consequential failures. Stay Connected: ● https://www.macco.group/ [https://www.macco.group/] ● https://www.linkedin.com/in/drewmcmanigle/ [https://www.linkedin.com/in/drewmcmanigle/] ● https://www.linkedin.com/in/berryspears/ [https://www.linkedin.com/in/berryspears/] ● https://www.linkedin.com/in/charles-beckham-753b1a32/ [https://www.linkedin.com/in/charles-beckham-753b1a32/]

When the Banks Failed: Lessons from the 1980s Texas Oil Bust Part 1

This episode looks back at the historic Texas oil crash of the early 1980s, bringing with it a full-scale financial collapse that reshaped careers, communities, and an entire industry. In the midst of it all were Berry Spears, Charlie Beckham, and host Drew McManigle who were just starting out as young lawyers and operators in West Texas. Over four decades later, they recount firsthand stories of failing banks, collapsing rig counts, FDIC interventions, and the monumental changes that followed in bankruptcy and restructuring law. This conversation sets the stage for how survival, trust, and hard lessons in the 80s shaped the modern restructuring world. 🎧 Episode Highlights ●[00:54]: Berry Spears’ and Charles Beckham’s early careers in 1980s West Texas ●[07:40]: Life inside the oil service business as the downturn begins ●[12:48]: Failure of major West Texas banks and the role of the FDIC ●[17:16]: Public reaction to bank closures and the run on deposits ●[29:26]: How the crisis shaped bankruptcy and restructuring careers 🔑 Key Takeaways: ●The Texas oil crash of the early 1980s was not an isolated energy downturn but a systemic financial crisis that collapsed banks, wiped out businesses, and destabilized entire communities across West Texas. The failure of major institutions like the National Bank of Odessa and First National Bank of Midland, followed by widespread FDIC intervention, exposed how aggressive lending and unrealistic assumptions about oil prices amplified the fallout. ●The crisis became an unintended training ground for a new generation of professionals. With little precedent under the newly revised bankruptcy code, young lawyers and operators like Berry Spears and Charles Beckham were forced to learn restructuring, workouts, and creditor negotiations in real time, shaping the foundations of modern bankruptcy and restructuring practice. ●The experience permanently reshaped how participants approached risk, trust, and decision-making. Scarcity of capital, public bank runs, and survival-driven compromises instilled a practical, relationship-based mindset that continues to influence how they navigate complex restructurings and business challenges decades later. 👤 Guest Spotlight: Berry Spears Berry D. Spears is a partner at Keller Benvenutti Kim LLP with a nationally recognized bankruptcy and restructuring practice rooted in decades of hands-on experience. Over the course of his career, he has represented virtually every stakeholder in a financial crisis from debtors and creditors to boards, lenders, and committees, bringing pragmatic, creative solutions to complex restructurings across industries including energy, healthcare, financial services, and real estate. Charles Beckham Charles Beckham is a partner at Haynes Boone and a nationally respected restructuring and bankruptcy lawyer with deep roots in complex financial crises. He built his career during the West Texas oil collapse of the 1980s, representing banks, the FDIC, and other stakeholders through some of the region’s most consequential failures. Stay Connected: ●https://www.macco.group/ ●https://www.linkedin.com/in/drewmcmanigle/ ●https://www.linkedin.com/in/berryspears/ ●https://www.linkedin.com/in/charles-beckham-753b1a32/

Rock N Roll Judge: Former Chief Judge of Southern TX Talks Law’s Spirit, Evolution & Future

They call him the Rock and Roll Judge; a man who could go from a courtroom to a concert stage without missing a beat. He's run marathons, played tuba, directed Broadway musicals, and reshaped how bankruptcy law is practiced in America— but Judge Richard Schmidt is known above all else for his deep respect for people and having a courtroom that ran like a symphony. In today’s episode, the retired Chief Judge of the Southern District of Texas discusses the evolution of Chapter 11, the human side of financial collapse, and the “rock and roll” spirit behind the bench. Key Insights & Timestamps: [00:00] Podcast begins [02:18] Broadway & the Bench: Serving as a judge while engaging in the community arts [06:00] Commander to Chief: Using air force leadership experience in the courtroom [17:12] Big Cost to Go Broke: Evolution of bankruptcy law into a high-cost game [28:06] Lessons Learned: Cases that tackled law & language barriers for Judge Schmidt [33:37] Advice for Law’s Next Generation: Managing the high stakes of bankruptcy law today Guest Spotlight: Judge Richard Schmidt Judge Richard Schmidt is a retired federal judge in Corpus Christi, TX, with 28 years of exemplary service on the Southern District of Texas bench. As a bankruptcy fiduciary, consultant, mediator, and arbitrator, he brings a wealth of experience and expertise to assist bankruptcy cases across the United States. Key Takeaways: From the Big Stage to the Court Room: When Judge Schmidt became the first bankruptcy judge in Corpus Christi, he was new to the community and sought many ways to get involved outside of the court room, including tapping into his past experience in musicals and symphonies. I think the public is entitled to know their judge,” Schmidt says of his time in Christi, “To the extent that you can be involved in things that are not judging, then you get to know the community.” Complex Cases & Chapter 11: The first complex case filed in Judge Schmidt’s courtroom was Greyhound, and he learned quickly about the importance of multiple hearings, lawyers on call, and fast decision making. There are a lot of decisions that have to be made right in a hurry, and they need a judge that can handle a complex case,” Schmidt explains when discussing the Greyhound case. “Not all judges are meant for complex cases, so I started developing a system.” Navigating High Stakes Cases: Advice for today’s lawyers and judges hits home for Judge Schmidt, whose daughter currently practices bankruptcy law and has sought his wisdom in the past with high profile cases. “For most judges, the rules are very important,” Schmidt says of practicing bankruptcy law. “I think you need to know the judge, his staff or her staff, and the clerk of the court.” Resources Mentioned: Judgerss.com Connect with Judge Richard Schmidt: Judgerss.com/contact/ Produced by Speakerbox Media.