Reevemark Founding Partner Paul Caminiti recently shared insights on the critical role of communications in complex restructuring matters at the American Bankruptcy Institute’s (ABI) Annual Spring Meeting in Washington, D.C.

In high-stakes restructurings, how a company communicates is as important as the decisions it makes. With U.S. corporate bankruptcies on the rise, effective communications can mitigate reputational damage, preserve brand and estate value, and position stakeholders for success upon emergence. A well-executed communications plan isn’t ancillary; it’s essential.

Here are five takeaways from the discussion:

Know your stakeholders and what matters to them

Effective communication starts with identifying stakeholders and understanding their perspectives and likely concerns. Employees, customers, vendors, landlords, investors, creditors, government officials and the media all have different priorities and expectations. Messaging must be consistent, but tailored in tone, detail, and delivery. Go beyond standard press releases and legal filings – develop targeted materials that meet each audience where they are.

Leaks are likely – prepare accordingly

Maintaining confidentiality is challenging. Many parties are aware of the process, new advisors come on board in the lead-up to a filing, and court filings can become public at all hours. Identify developments most vulnerable to leaks and plan for how different audiences might interpret them. Engaging with media on background and on-the-record when appropriate can help shape the story from the outset, including more accurate initial coverage, especially in local and trade press less familiar with the restructuring process. Leaks can set the tone, so be ready to shape it quickly and strategically.

First-day strategy sets the tone

The filing date is the first official opportunity to explain how the company got here and what comes next. Initial court filings and the press release matter, but they are only the starting point. Be prepared to engage with media on background, and quickly activate more easily digestible internal and external communications to cascade information to key stakeholders. Provide a clear point-of-contact for questions, monitor inquiries – including from the public – and be ready to adjust messaging in real time. Initial impressions shape the runway ahead.

Every milestone is an opportunity – don’t waste it

Developments from financing approvals to plan confirmations are opportunities to reinforce progress – or at a minimum, to provide clarity. Updates should be clear and in plain language: help stakeholders understand not just what happened, but why it matters. Proactive communication keeps momentum and prevents misinformation from filling the gaps.

Post-emergence communications matter just as much

Emergence marks a new phase that requires sustained strategic communications. Articulate a credible go-forward plan, explain the rationale for business changes, and keep your team motivated with clarity and consistency. Stakeholders should be reassured of the path ahead, with upcoming milestones outlined wherever possible. When challenges pop up, addressing them transparently and in context strengthens trust and positions the business for long-term success.

Recognized as a Top Five PR advisor in 2024 for Bankruptcy, Reevemark is proud to partner with companies to navigate the complexities of restructuring with confidence, clarity and credibility.