Restructuring & Workouts
When your business starts to have financial trouble, you should call your accountant – AND your attorney. We can take steps to help you restructure your business if the business is still viable. These are strategies that are outside bankruptcy. We can help you approach your creditors in a global effort to relieve pressure on your payables and then help you look at ways to increase your receivables as you move toward greater financial health in your business.
First, make certain that you have read and fully understand your business loan documents, including what constitutes a default, what are the grace periods prior to default, and what the lender’s remedies are in the event of a default. Be aware of what company assets serve as collateral for the loan and whether you have personally guaranteed the loan. You may be able to work out a loan modification with the lender to modify the payment schedule and amount for a period of time until you are able to return to the regular payments. Our firm can assist with helping you understand your loan documents and what restructuring options are available.
To be truthful, there are times that businesses are past their tipping points. In that case, there are certain steps that you can take to close down your business in an orderly manner. We will guide you in closing down your business so that you meet all the legal requirements under North Carolina statutes.