Regardless of their size or corporate structure, effective use of credit is important to almost all businesses. What happens, however, when managing that credit and meeting the terms of various loan agreements becomes too burdensome? For the debtor, the answer isn’t always to close the doors and move on. Likewise, it may be in the best interest of the creditor to rework debt obligations and give borrowers an opportunity to make the ROI worthwhile.
LeForce Law PLLC provides experienced legal representation to businesses struggling to maintain their debt obligations, as well as creditors facing the consistent delinquent or deficient repayment of loans. Jeff LeForce also works with companies to develop creative solutions for improving credit and cash flow.
Loan Workouts and Modifications
Although filing for bankruptcy protection can be a very effective way to restructure debt, it isn’t always the best alternative for businesses or creditors. This may be due to the length of time, and extent to which, the company has been struggling with debt obligations and the root cause of the financial problems. Another factor may be the impact the business’ reputation among customers and other parties. Attorney Jeff LeForce has been helping businesses complete successful debt workouts and loan restructuring for 20 years. He has been involved in:
- Out of Court workouts to avoid a bankruptcy filing
- Loan modifications
- Securing creative short and long-term financing
- Working with creditors
- Resizing the organization, including the sale of business units and product lines
- Maximizing cash flow
- Working with companies to restructure the business to provide long-term growth and profitability
- Out of court liquidations to maximize the return for creditors
Keys to Effective Business Restructuring and Debt Management
There are 3 key components to effective debt restructuring, and implementation of a successful long long-term debtor-creditor relationship. First, both debtors and creditors must work with an attorney who understands how to evaluate businesses, including their corporate history, operations, product and service lines, current debt obligations, financial and growth goals, and other aspects that impact current and future profitability and cash flow. Second, the attorney must know how far each side can move away from an ideal situation before the debtor-creditor relationship becomes undesirable from a business perspective. Last, the attorney must know how to put the pieces together to protect all sides moving forward. This may include drafting and executing new documentation, and establishing tools for monitoring the loan arrangement.
Contact an Experienced Debtor-Creditor Attorney