Insolvency Services
Solutions Management’s approach to insolvency capitalizes on the process and Bankruptcy Code to reorganize and restructure the client business to the benefit of all constituents. SMLLC have been equally successful in restructuring without bankruptcy protection, evidenced by a number of businesses operating profitably today.
It is unfortunate and often overwhelming when management realizes a business is becoming insolvent. However, it is essential to act swiftly and incisively in an unstable financial climate. In such situations, Solutions Management’s methodology has been tried and tested across multiple industries to great effect.
Too often companies or their financial constituents are overwhelmed by the bankruptcy process and therefore are unable to focus their energies on protecting the remaining collateral or enacting a solid restructuring plan. SMLLC’s executives are very experienced in all phases of the reorganization process. Our senior members have functioned in roles on behalf of the debtors, lenders, creditors and as CRO’s leading the process, understanding the issues from all angles and managing the political dynamics. SMLLC has provided all of the following services:
- Development of short term liquidity plan and 13-week rolling cash forecast
- Assistance in obtaining DIP financing
- Management of the day-to-day bankruptcy process to ensure that management can focus on the company’s operational and strategic needs
- Provision of interim and/or crisis management
- Assumption of responsibility for interacting with the Creditor Committee and the various legal and financial advisors of the debtor and the creditors
- Vendor and real estate negotiations
- Assistance in the development of an Exit Strategy
- Design, negotiation and implementation of a Plan of Reorganization that will ensure creditors recoup a fair return and the company has a capital structure that will allow it to implement its business plan after emergence
- Identification of sources of capital to provide exit financing
Post Bankruptcy
Companies frequently experience problems post the exit from bankruptcy protection. Whilst this “stall” may not be fatal, the damage to the vendor and customer confidence can impose financial consequences which in turn can restart the spiral of decline.