Chapter 11 Business Bankruptcy

The key to a successful Chapter 11 bankruptcy is pre-bankruptcy planning. There are great powers afforded to Chapter 11 Debtors, such as the ability to object to your creditors' claims, avoid liens, reject leases and contracts with no penalty, extend the time for repayment to existing creditors or even reduce the amount owed or paid to them. The ultimate purpose of a Chapter 11 case is to get a Plan of Reorganization (repayment) confirmed by the court. This is by no means a simple task and the requirements for doing this are rather complex. The Plan is basically a contract with one's creditors as to how they will be repaid, and from what source. The creditors have to vote for the Plan in certain numbers, or if they do not vote in sufficient numbers for the Plan, they may be forced to accept the Plan if other requirements are met.

There are many ways to formulate a Plan, subject to the requirements and limitations of the Bankruptcy Code, and the more skilled attorneys will explore all avenues to improve your business and financial position.Often there is litigation associated with any Chapter 11 case, either with the Debtor attacking the creditors, or vice versa.

While each case is different, your business may be able to avoid liquidation if a carefully crafted debt reorganization plan is presented and accepted by the creditors' committee. The Nacol Law Firm PC understands what needs to be done in order to salvage what you have worked hard to build. Specifically, we suggest:

-Boards of directors’ considerations and management of troubled companies before and during Chapter 11 proceedings, including counseling financially distressed companies of viable alternatives to commencing a bankruptcy case, problems and solutions which may or will arise in bankruptcy cases and structuring the potential resolution of same prior to their emergence

-Cash collateral negotiations and debtor- in- possession financing arrangements

-The purchase and sale of businesses and assets from Chapter 11 debtors

-Complex Chapter 11 plan negotiations and the litigation of contested plan confirmation issues

-Preference litigation and fraudulent conveyance litigation

-Enforcing the rights of secured creditors

-Single asset real estate partnership cases

-Corporate restructuring advice

The Nacol Law Firm
Law office of Mark Nacol
Serving clients in the Dallas / Fort Worth Metroplex area for over 30 years
Tel: 972-690-3333