Bankruptcy Chapter 11 Business Reorganization and Financial Restructuring

We have the capability of successfully guiding large and small companies through the restructuring process. Our key focus is to create practical, value-added solutions to difficult situations. We realize that every client brings to the table its own issues and concerns. Recognizing that, we do not take a “cookie-cutter” approach to our debtor practice. We work directly with the debtor’s management team to understand and become intimately familiar with a company’s particular business and the impact the current financial and legal issues are having on the business.

We strive to ensure that our clients achieve their goals in any restructuring. In certain instances, this may require helping clients obtain a deleveraging of their capital structure that enhances already strong operations. In other situations, it may require achieving longer-term operational turnarounds. We focus on developing effective and creative solutions to address our clients’ capital structure concerns and operational complexities.

We can assist with all aspects of the bankruptcy process including

representing debtors in and out of court

protecting the interests of senior lenders

asset sales and acquisitions, whether through a 363 sale, under a plan or out of court

advising boards regarding their duties and litigating fiduciary duty issues for both board members and estate representatives

representing unsecured creditor and bondholder committees

cram-down litigation

proceedings related to the assumption and rejection of unexpired leases and executory contracts

litigation of avoidance actions

debtor-in-possession financing

valuation proceedings

automatic stay litigation

bankruptcy appeals

Prepackages & Prearranged Restructurings

In a traditional stand-alone Chapter 11 restructuring — sometimes called a "free fall" case — the debtor often enters bankruptcy in response to a significant liquidity event but does not yet have restructuring arrangements in place with its major stakeholders. Over the course of the case, the debtor engages its various stakeholders and, using the tools of Chapter 11, restructures its operations and balance sheet.

In contrast, in a "prearranged" bankruptcy, the debtor enters Chapter 11 after negotiating the terms of a restructuring with its major stakeholders. Often, the debtor and certain stakeholders will have entered into a "lock-up" or "plan-support" agreement setting forth the salient terms of the restructuring. Once the debtor has obtained the support of its major stakeholders, it then will enter Chapter 11 and move fairly quickly to have the bankruptcy court approve the restructuring, as contained in the debtor's plan of reorganization.

A variant of the prearranged bankruptcy is the "prepackaged" bankruptcy, in which, before filing for bankruptcy, the debtor has negotiated, documented, and disclosed to creditors a plan of reorganization, and those creditors have voted in favor of the plan. Because much of the work has been completed ahead of the filing, a prepackaged Chapter 11 case can be completed in a much shorter time frame than a typical prearranged or traditional free-fall Chapter 11 case, thereby minimizing administrative costs and reducing much of the uncertainty of the bankruptcy process.