When it appears that a single transaction or the business itself is in trouble, our business restructuring attorneys help clients to understand the potential issues and problems that may arise and develop the plan to resolve them.
Restructuring professionals often promote the benefits of Chapter 11 of the United States Bankruptcy Code for restructuring the debts of insolvent or financially distressed businesses. Chapter 11 provides a reasonably well-defined set of rules, a developed body of judicial law interpreting those rules, an automatic stay prohibiting creditors from exercising remedies outside of the bankruptcy process and a central forum (the bankruptcy court) where all parties can be heard and disputes can be resolved either consensually or, when necessary, by decision of a single judge who presides over the entire process.
However, bankruptcy need not always be your go-to solution. There are a number of viable alternatives – workouts or financial ‘rescues’ and other out-of-court solutions – that distressed business debtors and their creditors may use:
- Debt restructuring and exchange offers
- Corporate dissolution, informal liquidation and wind-ups
- Loan modification and amendments
- Compositions and assignments for the benefit of creditors
- UCC foreclosure and juridical foreclosure
These alternatives can often accomplish many of the same things that are offered in a bankruptcy proceeding, though sometimes in a simpler and more efficient manner. Determining whether a particular alternative is best for the your business and other involved parties depends on various factors and the professionals at Primum Law Group can help you to decide.