Business Debt Workout

For many businesses and professionals, a lack of liquidity or inability to grow due to creditor demands keeps them from successfully resolving their financial problems. As banks and other creditors begin to call loans due, clients begin to have difficulty juggling between them. As these businesses and professionals'' cash dries up, so does their ability to keep their creditors content. Once liquidity becomes an issue, clients do not have the time or know-how to work with creditors to restructure the debt into a more manageable plan and run their businesses at the same time.

Our firm begins by analyzing a client''s financial situation from the top down. We begin by reviewing the client''s financial information to determine their current financial position. We then analyze the client''s debt from all aspects, including: a) how much debt they owe; b) the type of debt and its aggregate amount; c) the urgency associated with particular debt; and d) any inchoate (hidden) problem s that the client might not realize. After conducting this analysis, we then begin negotiating with the client''s creditors to restructure their debt so that they can more effectively run their business while meeting financial obligations.

In some cases, the problems with a business may be just as much internal to the business as external to it. In these cases, we guide our clients through a complete restructuring of their business from the top down. Often, this allows the client to accomplish the same goals as would be accomplished through a debt restructuring or a Chapter 11 bankruptcy, but with the added benefit of having a business rebuilt from the inside out to avoid the recurrence of many problems in the future.

To the extent that no negotiation or restructuring of the corporation or finances has been or will be successful, a Chapter 11 bankruptcy or dissolution of the business may be an option.