Maryland Corporate Restructuring
Our team of bankruptcy attorneys at Phillips Law Office in Greenbelt, MD, is here to help you with your corporate restructuring strategies to get you back on the path to financial recovery.
Maryland Corporate Restructuring
When a businessis facing significant issues or even going insolvent, corporate restructuring is a great way to get a company back on its feet. Restructuring activities may includemodifying the:
- company management
- debt
- internal operations
- legalities
- structure
Restructuringusually means implementing a new order to the structure of a company, including its ownership, legal, financial, and operational arrangement. The main goal of corporate restructuring is to add value to distressed companies through profit, better organization, and improved adaptation to the current market reality.
If you are struggling with your company and want to boost its business performance, consider corporate restructuring to make your company viable again. To have a successful corporate restructuring, you should hire an attorney specializing in the area to make sure you obtain long-term results.
Our team of bankruptcy attorneys at Phillips Law Office in Greenbelt, MD, is here to help you with your corporate restructuring strategies to get you back on the path to financial recovery.
Corporate restructuring is technically the “out-of-court restructuring” method for a debtor. Later, we will discuss Chapter 11 bankruptcy, which takes place in court.
Financial and Debt Restructuring
When a company restructures, a great way to start the process is with financial and debt restructuring strategies, which requires a reorganization of the company’scapital structures. The financial restructuring includes the consolidation of obligations as well as the adjustment of the terms of debts.
After that, a company can begin recapitalizing. Recapitalization can mean securing new loans, rescheduling debt pay off, and swapping private equity for debt.
A considerable part of debt restructuring is negotiating with your lenders and getting them to agree to reduce your interest rate on a loan or extend the due dates. Most of the time, a creditor will be willing to negotiate terms with a debtor because they are well aware they would receive less capital in return if the company went bankrupt or liquidated. It’s better for both if the distressed company can restore itself and continue its business operations.
Our Greenbelt bankruptcy attorneys at Phillips Law Office will help you with financial and debt management so that you can achieve the best results withfinancial restructuring.
Operational Restructuring
Operational restructuring is another integral part of a company’s path toward renewal. It is the step thataddresses the causes for suboptimal performance, rather than the symptoms. It is a difficult process, whichis why we are here to help.
During this step in the restructuring process, a company changes its business model to make more profit. Operational restructuring looks different for each company but most commonly requires cutting down on costs.
If you are working with one of our attorneys at Phillips Law Office, we will help you decide which moves are the best for your specific situation. Some cost-cutting moves include
- employment layoffs
- factory site and store closures
- selling assets
- mergers and acquisitions
- discontinuing certain products or services
This phase is important to restore confidence in a company’s stakeholders and lenders. It shows that a company is ready to perform at an optimal level again.
At this time, companies also usually restructure their legal setup.
Turnaround Management
Lastly, to complete a successful corporate restructuring, the company must construct a turnaround plan. To create an effective turnaround plan for your company, we will help you plan detailed steps that your company should take to reach solvency.
To develop the ideal turnaround plan for your company, our team at Phillips Law Officewill carry out a review of your management, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, and other analyses to understand the areas in which you need to focus on for improvement. This turnaround plan is essentially a company’s plan forfinancial stability.
The Alternative: Understanding Chapter 11 Bankruptcy
Unfortunately, corporate restructuring doesn’t always work for struggling companies in their renewal. In cases where a company cannot restructure successfully on itsown, itcan file for Chapter 11 bankruptcy as an alternative to getting itsbusiness back on track. This results ina “court-supervised” form of restructuring. Companies should avoid this scenario, but that’s not always feasible.
Filing for Chapter 11 bankruptcy is a way of applying for relief as a debtor from the court. Still, the distressed company must propose itsshort term reorganization plan to demonstrate how itwill pay itslenders over time. Our team of qualified bankruptcy attorneys in Greenbelt, MD, isprepared to help you understand the bankruptcy process.
What aBankruptcy Attorney Does For You When You File For Chapter 11
Suppose a company resorts to filing for Chapter 11 bankruptcy. In that case, our attorneys can file the case for them and begin helping the company restructure within the legal provisions for which theBankruptcy Code provides.
We assist companies in restoring liquidity and envisioning their new business models. In developing turnaround strategies, we make sure that all creditors to the company agree with the new terms. This negotiating process can be very long.
In a case where the creditors feel that the company is taking advantage of them, extensive litigation may be necessary. Once the court proceedings are over, we will draft, document, and effectuate the final agreement.
Who Qualifies for Corporate Restructuring/Chapter 11 Bankruptcy?
Any large or small business, including an individual owner, suffering from large-scale distressed debt can begin the task of corporate restructuring. If they cannot negotiate terms with lenders with an attorney’s help and support, they may resort to filing for Chapter 11 bankruptcy.
At Phillips Law Offices, our bankruptcy attorneys can help you create the optimal restructuring plans that businesses need in times of trouble.
Consult With aBusiness Bankruptcy Lawyer
If you are ready to begin corporate restructuring in Maryland, please reach out to us for a FREE consultation. There is so much we can do for your business.
At Phillips Law Office,we provide restructuring services to businesses in Greenbelt, MD, and surrounding areas.To start over fresh with your creditors, call us at Phillips Law Office today at 301 494-4250.
