Corporate Restructuring Can Help Businesses Overcome Insolvency

The marketplace can be volatile and unpredictable, causing companies to take immediate and important measures that are essential in handling rising debt, falling profits and changes in the economy. A corporate restructure is a way to turn things around while avoiding bankruptcy and overcoming solvency in creative new ways.

At Aaronson Schantz Beiley P.A., in Miami, Florida, not only do our restructuring lawyers understand all aspects of business restructuring and insolvency, but they also have successfully worked with many companies in many industries that have dealt with such issues. Restructuring and insolvency are central to our law practice, as our lawyers work with companies and their principals who are dealing with economic changes, transitions and fluctuations that compromise their ability to thrive and survive.

Frequently Asked Questions

Bring us your concerns such as the following and receive customized plans for overcoming your business’s insolvency challenge.

Why do businesses restructure?

The point of corporate restructure is to give your company the best chance of surviving a particularly stressful financial situation that may be the result of one or many economic and business factors, such as an economic recession or the devastating effects of the COVID-19 pandemic.

What are three key signs that it’s time to restructure?

Here are some fundamental reasons for corporate restructure:

• Debts are getting overly burdensome.
• Insolvency is taking hold.
• Consolidation or downsizing is clearly necessary.

What are some key benefits of proceeding with a workout and restructuring rather than pursuing a formal bankruptcy?

Restructuring is private and does not require the involvement of a bankruptcy court or any court. It preserves business-to-business relationships. It allows business owners to focus on operations and profitability instead of going through the major disruption that a business bankruptcy entails.

Read on for in-depth discussion of these concepts.

Restructuring

Our Miami restructuring lawyers at Aaronson Schantz Beiley P.A. have been successful in working with companies that need to get out of debt. Restructuring includes developing new strategies that are incorporated into a business plan that has targeted goals and through which debts to lenders and other creditors have been negotiated in a manner that results in new payment arrangements.

In order for restructuring to be successful, all aspects of your enterprise must be examined and analyzed. Restructuring may involve consolidating operations, downsizing certain areas of your company and changing the manner in which you do business. Working with creditors, which includes convincing them that your restructuring plan will work and benefit them, is also essential to your success in this endeavor.

Insolvency

Insolvency is directly related to your company’s debt and the need to restructure its debt. If your business is insolvent, that does not mean that you have to file for bankruptcy. Your company may be suffering from one of the following types of insolvency:

• Cash flow Insolvency: This situation is the result of a company being unable to pay its debts on time.
• Technical Insolvency: This means that a business is unable to meet its financial obligations, such as payroll and paying creditors.
• Accounting Insolvency: With this situation, total liabilities are greater than total assets, resulting in the company having a negative net worth.

Each type of insolvency can put stress on your ability to conduct business, and each one demands that you restructure your debt and, often, your entire company in order to pull your business out of the tenuous fiscal situation in which it finds itself.

You Have Choices

As a business owner dealing with rising or crushing debt, you do have choices in how to approach insolvency. Often, the best choice is to go through the process of restructuring your business and its debt. Working with a corporate restructuring lawyer who understands and can clearly explain your range of choices and who has been successful in facilitating business workouts, restructurings and other such methods devoted to debt relief will help ensure that you are taking the correct path.

It is important that business owners understand that there is no need to panic or make quick, uninformed decisions. Addressing insolvency takes logical analysis, the development of a practical plan and careful negotiations with creditors to finally create a solution that will have a lasting and positive effect.

What Type Of Lawyer Do You Need?

There are certain attributes to look for when considering which lawyer and restructuring law firm with which you will work. It is important to make sure that you do not limit your possibilities when dealing with insolvency. It is also paramount that you have trust and confidence in your attorney.

Your lawyer should:

• Be experienced and successful in business law
• Thoroughly understand the state and federal business laws
• Be able to offer you a range of choices when it comes to dealing with debt
• Be a solid communicator and offer services in a timely manner
• Provide you with services that will help you make sound decisions
• Ably negotiate new payment terms with your creditors
• Draw up all legal documents related to your restructuring

You should work with an attorney who is experienced, knowledgeable and successful in this area of the law.

A Florida Restructuring Law Firm Ready To Meet Your Business Needs

Although Aaronson Schantz Beiley P.A. offers bankruptcy advisor services, our lawyers are also equally qualified and able to ensure that your restructuring efforts and insolvency challenges are handled in a thorough manner and in a fashion that will provide you with the best possible solution.

To set up a free initial consultation, contact us by calling 786-600-6940 or filling out our short contact form below. Our team will help you determine the best manner in which you can work through issues related to insolvency and whether restructuring is the right choice for your particular situation.

Aaronson Schantz Beiley P.A., is a debt relief agency. We help businesses and individuals file for bankruptcy relief under the Bankruptcy Code.