On Monday, November 6,
2017, James C. Leda ’95 visited the Eberly College of Business and Information
Technology to give an informative lecture to the students of the Finance 422
seminar class. Jim is a former undergraduate of IUP and is now the managing director
of KRyS Global USA, an international fraud investigation, asset recovery, and restructuring firm.
Jim’s lecture addressed key aspects of Chapter 11 bankruptcy, including the plan of reorganization, bankruptcy court supervision, exclusivity, the absolute priority rule, executory contracts, avoidance actions, and creditors’ rights. He also identified the key players in the chapter process and discussed the key metrics that are indicators of financial distress. Much of the lecture was focused on the natural tension between creditors with different levels of seniority (e.g., unsecured bonds versus subordinated bonds), which can result in a “valuation fight.”
The lecture, which Jim presents on a regular basis, culminates in a mock bankruptcy procedure in which students negotiate for their constituency’s valuation based on financial statements and ratios of a hypothetical company. The goal is to provide a practical application of the material that is being taught in the classroom in the context of a complex financial situation.
Jim had great knowledge about multiple categories of finance and experience within the business environment. The overall lecture was very involved and informative with question/answer, group involvement, and a learning experience to finance students.
“You always have to remember to come back,” said Leda regarding his alma mater. “I really enjoy interacting with the students, professors, and administrators of the IUP Eberly College of Business and Information Technology.”