The Usual Scenario That Results in Debt Restructuring.

A firm can fall into financial trouble for many different reasons. Often, the gut reaction of the management is to file for Chapter 11 bankruptcy.

In our practice, we consider bankruptcy a last restore remedy. We always try to keep our clients out of bankruptcy, Why ?

Because an out of court debt restructuring or liquidation gas the potential of achieving higher returns for all the stakeholders at a lower cost. Furthermore companies increase the chances for a successful operating turnaround by avoiding the negative publicity after generated by the bankruptcy filing, also the lenders (stake holders) get the chance to recover their money without taking on lawyers expenses, running after court cases which often take ages to resolve and eventually result in both waste of time and money.

The usual scenario can occur in any type of business — manufacturing, distribution, services, retail, etc. Typically there is a bank lender with a line on account receivables, inventory, equipment, land and trade creditors.

We help mediate between these landers and the client to find amicable means of settlement and work together with all parties involved to ensure that not only the damage is contained but also recovery process is initiated enabling all stake holders to minimize the loss and in some cases also bounce back from the red.