Restructuring Debts and Bankruptcy Protection Due to COVID-19
Although the full-extent of the business disruption of the global coronavirus pandemic is not yet known, the unprecedented recent events are certain to have a far-reaching impact upon debtors, creditors, employers, employees, landlords, tenants, companies and individuals. It may be necessary for those impacted by current events to proactively consider businesses strategies that may be implemented to curb its effects, including, but not limited to:
- Restructuring debts in the face of losses attributable to business disruption;
- Mitigating of losses relating to customer contracts, delinquent payments, cancellations, suspensions of performance and the like;
- Filing claims in the bankruptcy actions of companies that owe you money (debtors);
- Implementing strategies for the preservation of business operations and the going-concern value of assets;
- Acquiring or disposing of distressed assets; and
- Negotiating with lenders and other creditors regarding forbearance and the suspension of performance under contracts.
Although we have experience representing virtually all parties to distressed transactions, the Restructuring, Insolvency and Bankruptcy Group at Burke, Warren, MacKay & Serritella, P.C. specializes in debtor representations in Chapter 7 and Chapter 11 bankruptcy cases as well as other out-of-court insolvency proceedings. While the goal is always to endeavor to maintain the going-concern value of our clients without resorting to a bankruptcy filing or other insolvency proceeding, extreme measures are sometimes required, and in any event, being aware of the contours of the Bankruptcy Code and other restructuring/reorganization/liquidation options can provide significant leverage in creditor negotiations.
Our attorneys are available to consult on proactive measures that may be required to preserve and protect your business interests.