Copyright (c) 2013 Eli Gali
Just the word bankruptcy can give a business owner chills and bring on anxiety and stress.
However, in Chapter 11 bankruptcy a corporation, LLC, and even sole proprietor can have a second
chance with a business restructuring. Huge corporations have entered into Chapter 11 and come out
being stronger and more viable. There are news articles almost daily about one giant or another
that has met the plan and is going full board ahead.
The key to making the decision that Chapter 11 Business Restructuring is the right move for any
business, large or small, is to consult with a seasoned Corporate Reorganization Lawyer. This
specialized attorney will review every aspect of the business from the ground up. Some of the
answers sought are to questions like did the current fiscal conditions arise out of mismanagement?
If so, what steps have been taken to alleviate this issue?
There are many benefits for a struggling company to opt for Business Restructuring. It could be
that the debts that are currently owed are settled for pennies on the dollar freeing capital to
work in real time. There is also the possibility that if the Corporate Reorganization Lawyer
proposes a workable plan to the courts, they may agree to allow current management to run the
day-to-day operations as status quo. Even if some members of the Committee vote down the plan,
there are steps that can be taken to over-ride the decision. However, in either case the court
will keep a close eye on how things are being run.
If there are any negative features of Chapter 11 they are that the company cannot enter into any
additional long-term debt, expand beyond its current boundaries or take off in a new direction.
However, these all make good common sense.
It is incumbent upon the management of a company researching the benefits of seeking Chapter 11
protection to find the best Corporate Reorganization Lawyer available. The entire process is
intricate, tedious and rift with special laws, rules and regulations. If the company in question
appears in court with an attorney who is ill-prepared, the case may be dismissed altogether. This
is a very precise legal specialty.
In the discovery process, the business wanting to restructure should query the attorney on how
many cases have been personally handled and out of those how many cases were ruled in favor of the
petitioner? Another detail to include is whether or not the attorney has worked both sides of the
fence. Does he know the 'tricks of the trade' that attorneys for the creditors will pull at court?
Does he know how to overcome their objections?
Business restructuring via Chapter 11 can be a virtual life-saver for many companies who could
proceed in business if it weren't for a heavy burden of debt. Everyone deserves a second chance,
and for a corporation or any size business, this could be it.
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Law Law Firm provides high caliber business related legal services in a broad range of areas
regarding corporate bankruptcy, general counsel and debtor and creditor rights. Eric Terry is a
lawyer that serves many clients in San Antonio, Austin, Houston and Dallas, Texas.
http://ericterrylaw.com
Posted by Randy Frier http://jrandallfrier.com/
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