Corporate Restructuring Attorney Chicago IL
A corporate restructuring attorney Chicago Illinois can examine your company’s finances and help you determine if a bankruptcy filing is right for you. Working with a corporate attorney Chicago IL, like the team at Childress Loucks & Plunkett, means you’ll receive the best representation possible.
It is not uncommon to see news reports about a large company filing for Chapter 11 bankruptcy protection. Over the past several years, some of the most prominent retailers have done just that, in an effort to avoid going out of business.
When a company files for Chapter 11 bankruptcy protection, they must have a proposed payment plan to show how they intend to pay all the creditors they owe, similar to the type of plan that a person must include when filing for Chapter 13 personal bankruptcy.
The following are some of the criteria that a Chapter 11 bankruptcy plan must have. For more detailed information, contact a corporate restructuring attorney Chicago IL.
A Bankruptcy Plan Must Be Confirmed
To get through Chapter 11, a business must have a restructuring plan confirmed by the bankruptcy court. In general, confirmation happens in one of two ways:
- Each class of creditors votes to voluntarily confirm the plan.
- The court approves the plan over the rejection of creditors in a process known as a cramdown.
Of course, for filing companies, they need to get through the bankruptcy process with a plan that will actually fix the underlying financial problems facing the business. After all, the entire point of Chapter 11 bankruptcy is reorganization; it is a process that is designed to help the company emerge stronger and on a sustainable financial path. It can be a daunting process, but a trusted corporate restructuring attorney Chicago IL will be with you every step of the way.
Keeping the Business Going Through Bankruptcy
For a business to come out of Chapter 11 bankruptcy in a financially viable position, it will typically need to keep operating through the restructuring process. Indeed, for most companies, this is extremely important. The reorganization needs to have as little disruption as possible to day-to-day operations. This is why many financially distressed companies opt for a plan that proposes full payment to all continuing trade creditors.
Essentially, this means that under the terms of the proposed plan, all creditors that work with the business, such as suppliers, vendors, and landlords, will get paid in full so that they have an incentive to keep working with the company. This is an ideal scenario for all of these companies.
However, a potential challenge comes in if other creditors, who are not going to receive full payment, attempt to disrupt the reorganization plan. In fact, other creditors may even vote to reject the plan because they believe that it treats them unfairly. For companies in this position, it is critical to work with a top-rated corporate restructuring attorney Chicago IL who can help them navigate this type of complex situation.
Get Help Now From a Corporate Restructuring Attorney Chicago IL
At Childress Loucks & Plunkett, our dedicated corporate restructuring attorney Chicago IL has considerable experience handling all aspects of Chapter 11 bankruptcy cases. If your company is facing severe financial distress, please contact us today to request your free and confidential case evaluation and find out how we can help you keep the doors of your business open and get back on financial track.