Restructuring Advisors

Chapter 11 Reorganization

Filing for Chapter 11 protection allows a company to continue operating free from lawsuits and financial claims from others that predate the filing, while the company reorganizes to meet the claims of those debtors and creditors who provide capital and goods to allow the company to grow after the reorganization. Under a Chapter 11 proceeding, a company typically continues to provide employees with salaries and benefits and is able to do business with suppliers and customers in the normal course. This process allows a company to continue generating funds in support of ongoing operations, and to reorganize their finances and operations in a manner that allows them to satisfy the demands of secured and unsecured creditors.

As part of the Chapter 11 process, the U.S. Trustee will appoint one or more committees that represent the interests of creditors and in certain situations the stockholders. The committees are appointed to work with the company in the development of a plan of reorganization to meet the obligations of debt holders in a reasonable period of time. Before the plan of reorganization can be approved it must be confirmed by the Court. Today, bankruptcy matters have become highly complex and litigious. What was originally hoped to be a fairly short-time “in court” can develop into lengthy legal proceedings where money needed to reorganize and pay creditors is spent fighting legal challenges.

The experienced team at Restructuring Advisors have significant experience in managing these complex matters involving distressed situations, restructurings and reorganizations. Our job is to help you define pre-filing strategies, manage the many demands of the process and allow management to stay focused on the financial and operational improvements necessary for the future of the organization. Our objective is to assist you in exiting the proceedings as quickly as possible with maximum control of the company’s future.

Call us to learn more about the benefits, costs and procedures involved in filing for bankruptcy protection.