Bankruptcy Planning
Kibel Green is expertly skilled in considering and planning for a bankruptcy filing. We provide the difference-making analytical support, strategic counsel and negotiation skill during this fight for survival.
1. Unsecured Creditor Negotiations and Creation of a Creditor Plan
Based on an analysis of a company's financial condition, it may be appropriate to develop, along with qualified legal counsel, an unsecured creditor plan that could:
- Extend payments
- Partially cancel debt
- Provide special handling of priority claims, law suits, and insured claims
- Convert debt to equity
Identifying creditors who are critical to the survival of the business is an art form. Done incorrectly, the business could fail as they must understand their alternatives and believe in a plan that demonstrates the future viability of the business.
2. Liquidation Analysis
As part of an effort to procure either DIP Financing or court approval for usage of cash collateral, Kibel Green will assess the range of recovery rates likely in the event of liquidation. This provides creditors with an ability to evaluate lending arrangements and provides the baseline for developing a Plan of Reorganization.
3. DIP Financing
One of the most important steps in preparing for a filing is getting the support of the senior lender. Preferably, this will be done consensually through a deliberate process with the lender to provide adequate funds during:
- Pre-petition – the weeks leading up to the filing including final payroll, funding of retainers, and similar cash needs
- Post-petition – all administrative and operating costs during the bankruptcy
- Exit financing – this is the period immediately following the bankruptcy after the Plan has been confirmed
Knowing that lenders in a senior position normally do not want to get into cash collateral and priming fights with third party lenders, we have succeeded in negotiating reasonable DIP financing agreements with senior lenders.
4. Plan of Reorganization
A plan of reorganization may be the best and highest recovery for the creditors of the estate. We assist by preparing disclosure statements, plan documents to be filed for approval, and similar items that guide debtors navigating the legal processes. Kibel Green also coordinates communications among creditor groups including the presentation and description of plan benefits to members of the general unsecured creditors' committee.
Please contact us today to learn more about how we can work together to evaluate the bankruptcy process as a viable option to stabilizing your business.
