Companies

A financially troubled company faces many questions:

  • Can it stay in business?
  • Should this be done through a Chapter 11 bankruptcy proceeding or can it be accomplished with out of court or workout agreements?
  • If a company must close its doors, is a Chapter 7 bankruptcy the best option?

At Janet E. Bostwick, PC, we provide expert guidance as well as legal expertise to help our clients understand their problems, determine the best approach for their specific situation and develop a solution. We work with companies both small and large, in a range of industries.

We work closely with our clients at every stage of the process, helping them to understand all of their options and the implications of each one.

We tell clients what they need to know, not what they want to hear.

What Path To Take?

The first question we ask a company in financial distress is what is the objective? Reorganize and stay in business? Sell the business? Close the business and cease operations? We then work with companies to determine if they can achieve their goal and the best way to go about it.

Deciding factors include:

  • The cause of the financial distress. Was it a one time event, a change in the business or industry or a fundamental problem?
  • How urgent is the financial crisis? Can the company meet its current payroll and expenses?
  • Is there pending litigation or foreclosure that will prevent the company from operating?
  • What steps have creditors taken? Have they started collection actions?
  • Are there resources to fund any shortfalls in cash?
  • What are the long term prospects of the business?
  • Will customers continue to work with the company?
  • Will lenders work with the company to restructure the debt?
  • Can the company repay some or all of the deb
  • Are there disagreements among management or the owners?

Seldom is there a clear cut, easy answer. Each option has advantages and disadvantages. After considering the issues, the company may decide it needs to take a different path. It is best to evaluate the alternatives at the beginning of the process to chart the best course.