Like it or not, many times businesses enter rough periods that can challenge their very survival. Economic cycles can create the need for restructuring, insolvencies, buyouts and corporate reorganizations, where both the needs of debtors and creditors must be represented.
A legal team must be fully engaged and remain focused to ensure the financial interests of all parties are addressed in a satisfactory manner.
Restructuring often means bankruptcy proceedings will take place, allowing businesses to either rehabilitate their core services or liquidate assets in such a way that preserves and maximizes their value.
A corporate restructuring legal team can provide insight and experience for Chapter 11 filings as well as working with various parties to try and work out recapitalizations or pre-negotiated workouts. Legal teams will be able to assist in analyzing and evaluating risks, benefits, challenges, and financial impacts during negotiated settlements or as part of formal bankruptcy filings.
In complex bankruptcy matters, litigation is often an integral part of proceedings. Corporate restructuring lawyers may be called upon to handle:
- Trustee appointment disputes
- Insurance coverage disputes
- Representation for shareholder, equity, creditor, employee retirement, and lienholder committees
- Claim objection and resolution
- Debtor-in-possession financing and cash collateral disputes
- Disputed sales or purchases of assets
- Liability litigation
- Relief from automatic stay motions
- Distressed mergers and acquisitions
Successfully working in these and other areas of restructuring will allow a company the time and resources it needs to shift their organization by instituting a new management team, sell part of their assets, institute cost containment measures, or change their business model in such a way that they become healthy and viable again. Legal teams can also be actively involved with changing financing strategies, developing a new product mix, re-branding or setting up a new distribution strategy.
Zagrans Law Firm proudly serves Cleveland and the surrounding Ohio communities of Brooklyn, Lakewood, East Cleveland, Parma, Seven Hills, Rocky River and University Heights.