A chapter 11 or chapter 7 bankruptcy filing is not the best option for every client. In certain situations, a client’s financial problems can be resolved through an out-of-court restructuring, financial workout, or dissolution. In these situations, our team works closely with the client to identify the main concerns leading to the financial distress. Often the client’s problems stem from a default with a secured lender, an issue with a commercial landlord, a dispute with a critical vendor, or costly unresolved litigation. In these instances, we will negotiate with the appropriate counter-party to resolve the matter, whether through a forbearance, modification, or settlement.
Occasionally, the best option for the client is a formal dissolution under state law. Our team helps clients to prepare a plan of dissolution that complies with applicable state law. We distribute the resulting plan to all known creditors and attempt to address any creditor concerns or related issues. We also ensure that the dissolution is in compliance with the entity’s organizational documents and that all necessary filings are completed.
Whether the recommended approach is a financial workout or a dissolution, our team strives to deliver positive results with an eye toward the bottom line.