Reorganization
If problems can be isolated and prompt action taken, the business may be reorganized successfully as a “stand-alone” entity. Chapter 9 of the Bankruptcy Code likewise affords public entities the prospect of “rehabilitation.”
Successful reorganization depends on identifying
- potentially profitable operations;
- available financing;
- organizational resources; and
- the cost of achieving a “turn-around.”
South Bay Law Firm’s unique combination of legal experience and very light administrative overhead offers clients informed, focused, and cost-effective analysis – and action.
Sales/Spin- Off
Frequently, it is preferable to preserve the value of a business through a sale of some or all of its divisions, lines of business, or specific assets.
The viability of a sale or spin-off depends on:
- the existence of one or more buyers or merger candidates;
- the availability of sufficient capital and the right acquisition structure; and
- sufficient value creation for creditors from the transaction.
South Bay Law Firm is able to partner effectively with the firm’s existing professionals – or with its own strategic network of insolvency professionals – to evaluate, negotiate, and execute on a successful sale strategy for the troubled business.
Liquidation
- Often, the value of an insolvent business is maximized by simply reducing its assets to cash as quickly and efficiently as possible.
- In these cases, the troubled business will seek liquidation through a going-out-of-business sale, public auction, private bulk sale to a liquidator, negotiated sale to a third party that will carry on part of the debtor's business, or transfers of assets to creditors in satisfaction of all or part of their claims.
- When a liquidation must be pursued, South Bay Law Firm is able to act quickly and cost-effectively to negotiate and document the best liquidation structure possible.
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