Chapter 11 Bankruptcy - Reorganization

Bankruptcies can rid businesses of burdensome contracts.

A business may accept or reject contractual obligations. Rejected contracts are no longer obligated to be performed. However, the counter party becomes an unsecured creditor. In the case of leases, the damages are capped.

Chapter 11 Bankruptcies can be used to restructure overpriced lease payments.

A business debtor can approach lenders for new sources of money to continue their business. A DIP lender is given priority over a business's other creditors as an incentive to lend money.

With 11 years business experience on Wall Street, I have reorganized many debtors. I am a Chartered Financial Analyst (CFA) and have helped many businesses return to profitability by advising them on how to cut costs and run more efficiently. If your business is cash-flow negative, I can analyze your operations and advise on how to become cash-flow positive. A cash-flow-positive business can then use a chapter 11 to restructure its debt and return to profitability.

Many business are profitable but for their overwhelming debt. This debt can be reorganized through a chapter 11 plan. A chapter 11 plan could be almost anything: reduction of payment, reduction of debt amount, lower interest rates, longer payment terms, or any combination those.The goal is debt payments so that can be serviced by cash flow, and your business can return to profitability.

I draft an effective plan of reorganization. Creditors know that they are often better off taking less money and allowing you to remain in business than allowing your business to fail and getting much less or nothing. Because of this, creditors are open to negotiation.