Debtor and Distressed Company Engagements

Our team routinely performs a variety of tasks for our debtor and distressed company clients, including those listed below.

  • identifying which path forward to take—whether an out-of-court restructuring, a pre-packaged or pre-negotiated chapter 11 process, a chapter 11 process without a pre-arranged deal or a sale of assets or equity under the auspices of the bankruptcy court
  • identifying key creditor and equity constituents and negotiating with them the terms of a restructuring that ensures their necessary support—and likewise, and equally importantly, determining which creditor and equity constituents are less important to engage in order for the company to achieve an optimal result at an accelerated pace
  • negotiating and documenting the terms of new liquidity instruments—whether it be short-term rescue financing, bridge loans, DIP financing or exit financing
  • negotiating and documenting the key documents that will be the company’s “ticket” out of its distress—whether it be a forbearance agreement, standstill agreement, rights offering, chapter 11 plan and disclosure statement, among other options
  • working with management to ensure that, during any restructuring process, the business continues to function, and employee morale does not wane, including by, among other things, developing bonus, incentive and employee retention programs
  • advising boards of directors and members of management with respect to their fiduciary duties
  • engaging in litigation with disgruntled constituents regarding any potential objections they have with regard to the company’s path forward and maneuvering such litigation through the court process.