Restructuring And Insolvency Can Help Businesses Adapt

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

Restructuring

The attorneys at Aaronson Schantz Beiley P.A. have been successful in working with companies that need to restructure. 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.

The point of restructuring 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, including but not limited to the devastating effects of the COVID-19 pandemic. 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 restructuring of its debt. If your business is insolvent, this does not mean that you have to file for bankruptcy. Your company may be suffering from one of various types of insolvency, such as cash flow, technical, or accounting insolvency. 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.

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, with the result being the company has a negative net worth.

You Have Choices

As a business owner dealing with rising or crushing debt, you do have choices in how to approach insolvency, and often the best choice is to go through the process of restructuring your business and its debt. Working with a business 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. That 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 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 us, as your attorneys.

Your lawyer should:

• Be experienced and successful in business law
• Understand the state and federal business laws thoroughly
• 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 a lawyer who is experienced, knowledgeable and successful in this area of the law.

Ready To Meet All Of Your Needs

Although Aaronson Schantz Beiley P.A. offers bankruptcy 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 our law office by calling 786-600-6940 or by filling out our short contact form below. We’ll 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.