Turnaround
Analysis
Chapter 11 Bankruptcy Filing
Chapter 11 is the first option many CEOs and business owners think of when faced with mounting creditor pressure to make payments when they are low on cash.
Chapter 11 allows business reorganization under the protection of federal bankruptcy laws. One of its greatest powers is the Automatic Stay provision which basically freezes all creditor actions while you develop a plan of reorganization. It also permits rejection of onerous contracts. These are all advantages.
The major disadvantages are its expensive and an administratively cumbersome process. Your business information becomes public and your competitors usually feed off the press release, using it as an excuse to conjure up customer apprehension about doing business with a "bankrupt" company.
At Business CPR our philosophy is Chapter 11 is always an option but NOT the first option. In our opinion the best way is to reorganize your business while you fly under the radar scope. Thats what an out of court restructure offers you.
If your bank wants "out" of your credit because of a deteriorating relationship or lender fatigue it will not be public information. Your competitors will not know that Business CPR is out shopping a new lender in the market place on your behalf. Unhappy vendors will not be advertising that Business CPR is working out a payment plan on over due debt.
As we said earlier, although Chapter 11 is always an option it is just NOT your first option.
TURNAROUNDS
80 mm Distributor
50 mm Wholesaler
10 mm Distributor
6 mm Manufacturer
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