Out-of-Court Workouts and Restructuring
A bankruptcy alternative that allows you to focus on your operations and the path to profitability
If you face insolvency, you can quickly reorganize your debt through an out-of-court workout or restructuring. Through this alternative to Chapter 11 bankruptcy, you enter into a contractual agreement with your creditors to resolve your debt obligations and progress towards financial stability.
The benefits of a workout include:
- Cost effectiveness
- Minimized business operations impact
- No court order required for use of cash
- A plan for financial stability
- Safeguard against drop in employee morale
- Protection from competitive action to exploit your situation
- Minimized public scrutiny of your company’s financial situation
Restructurings can happen more quickly than one might imagine. The experienced workout attorneys at Scroggins & Williamson, P.C. help businesses through this process, standing by their clients every step of the way—including a meeting with your creditors and preparation of workout agreements—with the utmost care and attention to detail and timelines.
Meeting with your creditors
Your first step in a workout is to meet with your creditors. If the company has significant secured debt, negotiations often commence first with the secured lenders. Next, negotiations ensue with unsecured creditors as a way to convince them that a workout is their best opportunity for payment. At these meetings, you discuss the issues that created your company’s financial problems, its current revenues and debt structure, and your future initiatives to reorganize.
Following the creditor meetings, you and your attorney propose a workout agreement. Such an agreement typically includes:
- A payment plan
- Collection activity moratorium and forbearance by secured lenders
- Creditor rights relating to your operations
- Creditor protection that you, the debtor, will fulfill the obligations of the agreement
The workout agreement
Counsel for all key parties negotiate extensively until they reach an agreement.
Creditors are usually given a short time period to accept your plan. However, not all creditors may agree to your proposed workout and are free to pursue their own actions if they choose to do so.
Professionalism and experience
Businesses in need of professional, experienced bankruptcy counsel rely on the attorneys of Scroggins & Williamson, P.C. for out-of-court workouts and restructuring. The firm welcomes your most pressing problems and the opportunity to resolve them. Call Scroggins & Williamson, P.C. at 1-404-893-3880 or contact the firm online.
Serving Georgia and the Southeast U.S.